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We develop a tax competition framework in which some jurisdictions, called tax havens, are parasitic on the revenues of other countries. The havens use real resources to help companies camouflage their home-country tax avoidance, and countries use resources in an attempt to limit the transfer of...
Persistent link: https://www.econbiz.de/10012780128
This paper analyzes the tax haven investment behavior of multinational firms from a country that exempts foreign income from taxation. High foreign tax rates generally encourage firms to invest in tax havens, though significant costs of reallocating taxable income dampen these incentives. The...
Persistent link: https://www.econbiz.de/10013117565
In this paper we analyze the link between corruption money laundering and round-trip investment via offshore jurisdictions utilizing Russian firm-level data. In particular we empirically explore location strategies of round-trip investors (namely, from Cyprus and British Virgin Islands) across...
Persistent link: https://www.econbiz.de/10013082421
restate bilateral investment positions to better reflect the true financial linkages connecting countries around the world. We … nearly 600 billion dollars, while China's official net creditor position to the rest of the world is overstated by about 50 …
Persistent link: https://www.econbiz.de/10012839470
Beginning in 2004, official statistics display a slowdown in U.S. productivity growth. We show how offshore profit shifting by U.S. multinational enterprises affects GDP and, thus, productivity measurement. Profit shifting increased in the mid- 1990s, resulting in lower measured productivity...
Persistent link: https://www.econbiz.de/10012958592
This paper analyzes the factors influencing whether countries become tax havens. Roughly 15 percent of countries are tax havens; as has been widely observed, these countries tend to be small and affluent. This paper documents another robust empirical regularity: better-governed countries are...
Persistent link: https://www.econbiz.de/10012760482
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...
Persistent link: https://www.econbiz.de/10012767421
By exploiting new macroeconomic data known as foreign affiliates statistics, we show that affiliates of foreign multinational firms are an order of magnitude more profitable than local firms in low-tax countries. By contrast, affiliates of foreign multinationals are less profitable than local...
Persistent link: https://www.econbiz.de/10012916909
thereby stimulate economic activity. Major tax havens have less than one percent of the world's population (outside the United … States), and 2.3 percent of world GDP, but host 5.7 percent of the foreign employment and 8.4 percent of foreign property ….3 percent between 1982 and 1999, which compares favorably to the world average of 1.4 percent. Tax haven governments appear to …
Persistent link: https://www.econbiz.de/10013313798
country in offshore tax havens. The equivalent of 10% of world GDP is held in tax havens globally, but this average masks a … countries, which account for close to half of world GDP. Because offshore wealth is very concentrated at the top, accounting for … world …
Persistent link: https://www.econbiz.de/10012948058