Vanuatu is a pure tax haven. Freedom of movement of capital and absence of direct taxation of any kind on citizens and resident expatriates alike made Vanuatu an attractive offshore financial center (OFC) in the Pacific. Vanuatu for its budgetary needs has therefore, been depending on indirect...

This paper examines the roles of foreign direct investment (FDI) and financial development (FD) in Pacific island countries (PICs), with a case study on Vanuatu. It has been documented in various empirical studies on other regions that well developed financial systems enable countries to take...

The financial and banking crises in USA in late 2007 led to a decline in economic activities in the industrialized countries, triggering a world-wide recession since then. The ongoing global economic downturn has brought into sharp focus the subject of macroeconomic interdependence of Pacific...