'INFORMATION HINTERLAND'- A BASE FOR FINANCIAL CENTRE DEVELOPMENT: THE CASE OF BEIJING VERSUS SHANGHAI IN CHINA

ABSTRACT This paper examines the role of ‘information hinterland’ as a determinant to financial agglomeration and financial centre development. The concept is then applied to investigate the potentials of Beijing and Shanghai in becoming financial centres in China. Specifically, the information hinterlands of the two cities are identified in two steps: first, the boundaries of the hinterlands are demarcated on the basis of distance, intensity of transport connection and interactions in terms of migration. Second, the intensity of information from the hinterland is assessed in terms of business information, policy information and the seats of multinational headquarters. Results of the analysis and their implications are discussed.