Following the advancement of technological information and the globalization process, Sassen (1991) proposes the concept of a global city by connecting it with cross-border activities such as finance and specialized sectors (telecommunications and multimedia).
Almost 40 years later, Peter Hall (1966) provides the taxonomic hierarchy of financial cities where New York and London claim the first and second major and largest centers in the world stage. Gras (1922) and McKenzie (1927) mention the social and geographical characteristics of the world cities, which are demonstrated to influence the remaining parts of the world. Theories have been developed by many urbanists in determining cities which provide significant effects on the global economy. The world has observed the formation and advancement of metropolitan cities in the earliest twentieth century. When all criteria and techniques are jointly considered, three fundamental determinants are identified for the Asia-Pacific region: (i) freedom to trade internationally (ii) higher education and training and (iii) market size. Two key criteria are used to select relevant models with appropriate determinants. Unlike previous studies, we use both Bayesian averaging of classical estimates (BACE) and the weighted average least square (WALS) in our analyses to ensure the robustness of the findings. We form 16,384 models on these 14 determinants to test the appropriateness of each of these determinants. The relevance and importance of these determinants for the Asia-Pacific region are unclear. Current literature provides us with 14 determinants which have been used in previous academic studies. This study is conducted to examine and identify the fundamental determinants for the Asia-Pacific region. Well designed and comprehensive analyses of identifying determinants for a global financial center (GFC) are limited.
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