Document Type
Article
Abstract
International Financial Centers (IFCs) are hubs of legal and financial innovation, developing specialized frameworks that facilitate cross-border investment, enhance global capital mobility, and support economic growth. Through jurisdictional competition, professional clustering, and adaptive regulatory frameworks, IFCs have pioneered legal structures that enable enterprises of all sizes to participate in the global economy. Using case studies of the International Business Company, the Limited Liability Company, the Protected Cell Company, and advances in trust law and applying the theoretical frameworks of social scientist Richard Florida and psychologist Mihalyi Csikszentmihalyi, this article illustrates how IFCs serve as laboratories for financial experimentation, generating widely adopted legal solutions. Beyond creating new business structures, advanced IFCs contribute to the resilience of the global financial system by fostering professional networks, refining regulatory best practices, and enhancing legal certainty for international transactions. Although often mischaracterized as tax havens, IFCs play a far more significant role as centers of legal and financial creativity, shaping the modern global economy through innovation and institutional adaptation.
Recommended Citation
Ku, Charlotte and Morriss, Andrew P.
(2025)
"The "Not Seen" Effect of International Financial Centers: Innovation in the Global Financial Ecosystem,"
South Carolina Journal of International Law and Business: Vol. 21:
Iss.
2, Article 2.
Available at:
https://scholarcommons.sc.edu/scjilb/vol21/iss2/2
