Book

Description

In an era of unprecedented financial integration, the role of tax havens has evolved from a peripheral "sideshow" for the elite to a central, systemic component of the global economy. Global Capital Mobility and the Tax Haven Ecosystem provides a rigorous, PhD-level empirical investigation into the forces driving the expansion of these jurisdictions from 1995 to 2022.   Drawing on extensive panel data from 43 nations, author Fawad Ahmad Abbasi utilizes sophisticated econometric techniques including Fixed Effects Models (FEM) and Panel Corrected Standard Errors (PCSE) to analyze the relationship between globalization and tax haven activity. This research challenges conventional wisdom by demonstrating that financial globalization ($KOFFIGI$) exerts a more profound impact on tax haven usage than traditional trade-based metrics.   Beyond simple correlation, the study delves into the "Governance Paradox," revealing how institutional quality and government integrity serve as critical determinants for attracting Foreign Direct Investment (FDI) into haven jurisdictions. Crucially, the book identifies a significant paradigm shift occurring after 2015, marked by a sharp decline in FDI net inflows a trend that coincides with heightened international scrutiny and EU blacklisting initiatives.   This work is an essential resource for economists, policymakers, and finance professionals seeking to understand the moral conundrums, political-economic tensions, and future trajectories of the global tax landscape in a post-pandemic world.