Abstract

This study investigates the relationship between financial centres index and GDP growth of 20 countries with the world’s largest GDP. In our sample each country is represented by just one financial centre. We tested many models through several panel approaches. Use of a fixed-effects model, fixed-effects (within) regression, random-effects GLS regression, random-effects ML regression, and empirical findings showed that the global financial centres index variable is highly statistically significant, and coefficients obtained from different estimations are very close to each other. Our findings support the idea that financial centres positively affect the GDP growth of countries.

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