Grey zones in global finance: The distorted geography of cross-border investments

Anne-Laure Delatte, Amelie Guillin and Vincent Vicard
Additional contact information
Amelie Guillin: ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel

Post-Print from HAL

Abstract: Complex cross-border financial structures inflate measured international investment stocks in tax havens. Using a standard gravity framework, we estimate that about 40% of global assets (FDI, portfolio equity and debt) are ‘abnormal' – unexplained – and operated through tax havens. Abnormal stocks are increasing over time and concentrated in a limited number of jurisdictions. Six jurisdictions including three European countries are the largest contributors: Cayman, Bermuda, Luxembourg, Hong Kong, Ireland and the Netherlands. Interestingly, the Luxleaks in 2014 do not appear to have diverted cross-border investments away.

Keywords: Cross-border investments; Capital openness; Tax havens; Gravity equation (search for similar items in EconPapers)
Date: 2022
Note: View the original document on HAL open archive server: https://hal.science/hal-03670567v1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Published in Journal of International Money and Finance, 2022, 120, ⟨10.1016/j.jimonfin.2021.102540⟩

Downloads: (external link)
https://hal.science/hal-03670567v1/document (application/pdf)

Related works:
Journal Article: Grey zones in global finance: The distorted geography of cross-border investments (2022)
Working Paper: Grey ZOnes in Global Finance: the Distorted Geography of Cross Border Investments (2021)
Working Paper: Grey Zones in Global Finance: the Distorted Geography of Cross-Border Investments (2020)
Working Paper: Grey Zones in Global Finance: the distorted Geography of Cross-Border Investments (2020)
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:hal:journl:hal-03670567

DOI: 10.1016/j.jimonfin.2021.102540

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().