Are Tax Havens Good Neighbors? An LDC Perspective

Written by: Luisa Blanco[*] and Cynthia L. Rogers Abstract Tax competition and spillover models offer ambiguous predictions of tax haven impacts on non- tax havens. The implications of tax havens for less developed countries (LDCs), in particular, are not well understood and are little studied. This paper investigates the impact of tax havens on foreign direct investment (FDI) in non-tax haven LDCs. We investigate spillover and agglomeration factors by including…