The Economic Growth Effect of Offshore Banking in Host Territories: Evidence from the Caribbean

James Butkiewicz and Leo-Rey Gordon ()

World Development, 2013, vol. 44, issue C, 165-179

Abstract: Following the success of renowned Caribbean offshore centers, several small islands have enacted offshore banking policies as a strategy for increasing economic growth. Several empirical studies have assessed the growth effect of such policies, but none accounts for sector size when estimating its growth impact. This study contributes to this literature by estimating the magnitude of offshore activity in each territory, and using this estimate as a continuous variable in an economic growth model. The results provide support for the hypothesis that facilitating offshore banking stimulates economic growth in host islands, and that the benefit is proportional to sector size.

Keywords: banking; caribbean; economic growth; financial intermediaries; offshore financial centers; tax havens (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305750X12002331
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:44:y:2013:i:c:p:165-179

DOI: 10.1016/j.worlddev.2012.09.017

Access Statistics for this article

World Development is currently edited by O. T. Coomes

More articles in World Development from Elsevier
Bibliographic data for series maintained by Catherine Liu ().