Offshore financial centers : parasites or symbionts?
Andrew K. Rose and Mark M. Spiegel
| Year of publication: |
May 2005
|
|---|---|
| Authors: | Rose, Andrew |
| Other Persons: | Spiegel, Mark (contributor) |
| Institutions: | Federal Reserve Bank of San Francisco (contributor) |
| Subject: | Steueroase | Tax haven | Vergleich | Comparison | Welt | World | 2001-2002 |
| Extent: | Online-Ressource, 39 p., text ill |
|---|---|
| Series: | Working papers series / Federal Reserve Bank of San Francisco. - San Francisco, Calif., ZDB-ID 2187821-3. - Vol. 2005.05 |
| Type of publication: | Book / Working Paper |
| Type of publication (narrower categories): | Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature |
| Language: | English |
| Notes: | Systemvoraussetzungen: Acrobat reader This paper analyzes the causes and consequences of offshore financial centers (OFCs). Since OFCs are likely to be tax havens and money launderers, they encourage bad behavior in source countries. Nevertheless, OFCs may also have unintended positive consequences for their neighbors, since they act as a competitive fringe for the domestic banking sector. We derive and simulate a model of a home country monopoly bank facing a representative competitive OFC which offers tax advantages attained by moving assets offshore at a cost that is increasing in distance between the OFC and the source. Our model predicts that proximity to an OFC is likely to have pro-competitive implications for the domestic banking sector, although the overall effect on welfare is ambiguous. We test and confirm the predictions empirically. Proximity to an OFC is associated with a more competitive domestic banking system and greater overall financial depth |
| Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10003158645