Factors influencing the origin and evolution of the tax havens

• Thesis title in Czech: Faktory ovlivňující vznik a vývoj daňových rájů
• Thesis title in English: Factors influencing the origin and evolution of the tax havens
• Key words: daňový ráj, vládní index, probit model, regresní analýza
• English key words: tax haven, government index, probit model, regression analysis
• Academic year of topic announcement: 2010/2011
• Thesis type: Bachelor's thesis
• Thesis language: angličtina
• Department: Institute of Economic Studies (23-IES)
• Supervisor: prof. Petr Janský, Ph.D.
• Author: hidden - assigned by the advisor
• Date of registration: 06.11.2010
• Date of assignment: 04.03.2011
• Date and time of defence: 14.09.2011 08:00
• Venue of defence: IES
• Date of electronic submission: 23.08.2011
• Date of proceeded defence: 14.09.2011
• Opponents: doc. PhDr. Lubomír Cingl, Ph.D.

References

[1] DESAI, M. A.; FOLEY, C. F.; HINES, J. R., Jr. (2004): ”Economic Effects Of
Regional Tax Havens.” NBER Working Paper Series, No. 10806.
[2] DHARMAPALA, D.; HINES, J. R., Jr. (2006): ”Which Countries Become Tax
Havens?” NBER Working Paper Series, No. 12802.
[3] GALLUP, J. D.; SACHS J. D.; MELLINGER, A. (1999): ”Geography and
Economic Development.” CID Working Paper No. 1.
[4] GORDON, R. H.; HINES, J. R., Jr. (2002): ”International Taxation” NBER
Working Paper Series, No. 8854.
[5] HAMPTON, M.; CHRISTIANSEN, J. (2002): ”Offshore Pariahs? Small Island
Economies, Tax Havens, and the Re-configuration of Global Finance” World
Development, vol. 30, issue 9, pages 1657-1673.
[6] HINES, J. R., Jr. (2004): ”Do Tax Havens Flourish?” NBER Working Paper
Series, No. 10935.
[7] IMF (2000): ”Offshore Financial Centers” IMF Background Paper. Available
at: http://www.imf.org/external/np/mae/oshore/2000/eng/back.htm
[8] LA PORTA, R.; LOPEZ-DE-SILANES, F.; SHLEIFER, A.; VISHNY, R.
(1999): ”The Quality of Government.” Journal of Law, Economics, Organi-
zation, 15, 222-279.
[9] LANE, Philip R.; MILESI-FERRETTI, Gian Maria (2010): ”Cross-Border
Investment in Small International Financial Centers.” IMF Working Paper,
WP/10/38.
[10] MASCIANDARO, Donato (2006): ”Offshore Financial Centres: Explaining the
Regulation” Paolo Baffi Centre Bocconi University Working Paper, No. 170.
[11] OECD (1998): ”Harmful Tax Competition: An Emerging Global Issue” Paris:
OECD. Available at: http://www.oecd.org/dataoecd/33/0/1904176.pdf
34
[12] OECD (2002): ”Harmful Tax Practices” Available at: http://www.oecd.org/
department/0,3355,en_2649_33745_1_1_1_1_1,00.html
[13] ROSE, A. K.; SPIEGEL, M. (2006): ”Offshore Financial Centers: Parasites or
Symbionts?” NBER Working Paper Series, No. 12044.
[14] TAX JUSTICE NETWORK: ”Identifying Tax Havens and Offshore Finance
Centres” (2007). Available at:
http://www.taxjustice.net/cms/upload/pdf/
Identifying_Tax_Havens_Jul_07.pdf
[15] The World Bank Group (2009): ”Worldwide Governance Indicators” Available
at: http://info.worldbank.org/governance/wgi/index.asp
[16] Transparency International (2010):
”Corruption Perceptions Index 2010”
Available at:
http://www.transparency.org/policy_research/surveys _in-
dices/cpi/2010
[17] ZOROMÉ, Ahmed (2007): ”Concept of Offshore Financial Centers: In Search
of an Operational Definition.” IMF Working Paper, WP/07/87.

Preliminary scope of work in English

This thesis examines tax havens, specifically it searches for factors which influence
the probability that a given country becomes tax haven. Nowadays there are roughly
40 tax havens all over the world. The main target of this thesis is to find out what
effects does the demographic, economic and geographic indicators have on their existence.
By using the extensive dataset for the period of 6 years we illustrate the
time development and possible trends. With the help of several standard regression
methods we confirmed the already existing hypothesis that tax havens are inclined
to be small and more affluent jurisdictions. Moreover, the results indicate that the
quality of governance in tax havens is substantially higher than in other countries.
This is not only a short-term phenomenon, it showed to be valid for a longer time
period. The discovered outcomes are statistically significant and robust to the use
of other relevant variables. Tax havens also scores much better on the measures
of corruption than other countries. Our conclusions help to clarify the causes why
certain jurisdictions become tax havens, and at the same time they provide recommendations
for the concerning economic policy.