Concept of Offshore Financial Centers: In Search of an Operational Definition

Author/Editor:

Ahmed Zoromé

Publication Date:

April 1, 2007

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper proposes a new definition of Offshore Financial Centers (OFCs) and develops a statistical method to differentiate between OFCs and non-OFCs using data from the Coordinated Portfolio Investment Survey (CPIS), the International Investment Position (IIP), and the balance of payments. The suggested methodology identifies more than 80 percent of the OFCs in the study sample that also appear in the a priori list used by the IMF to conduct its OFC assessment program. The methodology distinguishes OFCs based strictly on their macroeconomic features and avoids subjective presumptions on their activities or regulatory frameworks. The study also identifies three new countries meeting OFC criteria.

Series:

Working Paper No. 2007/087

Subject:

Financial services International investment position Nonbank financial institutions Offshore financial centers Service exports

English

Publication Date:

April 1, 2007

ISBN/ISSN:

9781451866513/1018-5941

Stock No:

WPIEA2007087

Pages:

32

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