The Ascent And Decline Of Tokyo As An International Financial Center And Its Englightenments

In the process of economic globalization, it is more and more important for a country to improve its status in the international financial system, especially for the economic giants. So having an international or global international financial center helps a country have greater voice. Firstly, this requires a clear understanding of the international financial centers.It is acknowledged that London, New York and Tokyo is the largest international financial centers in the world. London is and old-line financial center, New York grew up after the World War 2, while Tokyo grew up quickly during the 1980s, and then became a global financial center. But at the beginning of 1990s, the"bubble economy"broke up, and a big shock was brought to Tokyo's financial market, stock prices slumped, banks fell into trouble, and the economic of Japan stopped growing for a long time.Japan abuts China, and the two countries have a consanguineous relationship in economy. The situation in China now is similar to what happened in Japan during 1980s. They are both countries with huge international trade, both have continued trade surplus, and have huge foreign exchange reserve. Also, similarly to Tokyo in the 1980s, it's highly expected that Shanghai should become an international financial center.So it is significative for us to have a deep research on the ascent and decline of Tokyo as an international financial center. But there are not related researches on the development of Tokyo as an international financial center. Though there are many researches on the"bubble economy", most of them focus on the cause of the"bubble". Even some researches focus on the influence of the bubble's breaking up; they only analyze the influence on stock market and real estate market. What have happened on the Tokyo financial market before and after the crisis? How did the status of Tokyo international financial center change? What are the causes of the ascent and decline of Tokyo as an international financial center?For solving these questions, we firstly analyze the theory of international financial center, then we infer the factors that effect the forming and development of international financial center. Then we build up a series of variables that measure the development level of international financial center. Based on the theoretic analysis, we describe the Tokyo financial market roundly. We explain the process of ascent and decline based on the data. Then we use TOPSIS model to estimate the status of Tokyo financial center. We also try to find the factors that effect the development of Tokyo financial center based on cointegration analysis and error correction mechanism.Finally we try to find the causes of the ascent and decline of Tokyo financial center, and offer suggestions for the construction of Shanghai to be an international financial center.