Pieretti, Patrice; Thisse, Jacques-François; Zanaj, … - Centre de Recherche en Économie Appliquée (CREA), … - 2011
Our aim is to explain how a small country can be viable as an international banking center (IBC). We build a model in which mobile investors choose between two banking centers located respectively in a small country and in a large country. These countries compete in two instruments, taxation and...