Work

The dark side of innovation in financial centres: legal designs and territorialities of law

Year: 2022

Type: article

Abstract: Innovation studies rarely incorporate finance in their analysis, although productive innovation and economic development require efficient allocation of financial resources. Complex financial vehicles other than banks increasingly fund global economic activity. These innovative, yet ‘dark’ financial entities service the shielding of private – not public – wealth, and challenge the positive notion of financial innovation as they help cement socio-spatial inequalities. We illustrate how legal structuring benefits (from) the commercialization of state sovereignty and the finetuned work of finance-cum-law that have long shaped the business model of leading financial centres; a legacy difficult to disengage from in times of financial sustainability imperatives.

Source: Regional Studies

DOI: 10.1080/00343404.2022.2107629

Author: Sabine Dörry

Institution: Luxembourg Institute of Socio-Economic Research

Language: English

Topic: Housing, Finance, and Neoliberalism

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Funders: Fonds National de la Recherche Luxembourg, Fonds Wetenschappelijk Onderzoek