Istanbul’s Position as a Financial Center: An Empirical Analysis

Abstract

This study aims to determine the cluster of homogenous financial centers by using hierarchical clustering analysis and defining in which the same cluster Istanbul city takes part with other financial centers. Thirty-eight countries’ financial centers and sixteen variables were included in the analysis. Ward’s hierarchical clustering analysis technique was applied for analyzing data, and a Squared Euclidian distance measure was used. According to the analysis results, countries were grouped into four different clusters. Sydney, Vienna, Brussels, Toronto, Helsinki, Paris, Frankfurt, Tokyo, Amsterdam, Madrid, Stockholm, Zurich, London, and New York were gathered in Cluster 1. Rio De Janerio, Prague, Shanghai, Johannesburg, Milan, Kuala Lumpur, Warsaw, Lisbon, Moscow, Bangkok, Athens, Tel Aviv, Seoul, and Almaty were gathered in Cluster 2, and Istanbul found its place in Cluster 3 sharing with Mexico city, New Delhi, Jakarta, Cairo, and Bogota. Dublin, Doha, Singapore, and Dubai were gathered in Cluster 4. The empirical results clearly showed that Istanbul city has not homogenized with the international/global financial centers yet.