The Offshore-Intensity Ratio: Identifying the Strongest Magnets for Foreign Capital
CITYPERC Working Paper Series 2015/02
19 Pages Posted: 7 Mar 2017
Date Written: November 10, 2015
This paper presents the Offshore-Intensity Ratio – a simple and straightforward way to identify which countries and jurisdictions could be seen as offshore financial centres (OFCs). By setting the aggregated amount of external capital booked in a jurisdiction in relation to the size of its domestic economy, we get a ratio that expresses the strength with which the particular jurisdiction has acted as a magnet for foreign capital. Sixteen jurisdictions are identified as probable OFCs, including the Cayman Islands, the British Virgin Islands, Bermuda and Luxembourg, but also Ireland and the Netherlands. A novel visualization shows the role of the largest offshore centres in contemporary global finance.
Keywords: Offshore Finance, Tax Havens, Foreign Capital, International Financial System
JEL Classification: F39, F59, F65, H26, O57, P52
Suggested Citation: Suggested Citation