Competition Between Tax Havens: Does Geographic Distribution Matter?

Written by: Luisa Blanco and Cynthia Rogers 1. Introduction Over the past decade, economic globalization has led to a significant increase in capital mobility and a corresponding increase in demand for tax haven operations. In fact, total liabilities for a sample of 20 tax havens grew by 154 percent between 1998 and 2006 (Kudrle, 2008). Fearing the harmful impacts of tax haven policies, OECD countries launched the 1998 Harmful Tax…