The Offshore-Intensity Ratio: Identifying the Strongest Magnets for Foreign Capital

CITYPERC Working Paper Series 2015/02

19 Pages Posted: 7 Mar 2017  

Jan Fichtner

University of Amsterdam / CORPNET

Date Written: November 10, 2015

Abstract

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

Fichtner, Jan, The Offshore-Intensity Ratio: Identifying the Strongest Magnets for Foreign Capital (November 10, 2015). CITYPERC Working Paper Series 2015/02. Available at SSRN: https://ssrn.com/abstract=2928027 or http://dx.doi.org/10.2139/ssrn.2928027

Jan Fichtner (Contact Author)

University of Amsterdam / CORPNET ( email )

Nieuwe Achtergracht 166
Amsterdam, 1018 WV
Netherlands

HOME PAGE: http://www.jfichtner.net

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