draining development.pdf - Khazar University

Tax Havens and Illicit Flows 361usual suspects. The latter are defined as those jurisdictions that feature ona majority of the 11 lists shown in table 11A.1 (that is, on six or more). 22Table 11A.4 and figures 11.1 and 11.2 present the main results. 23 If theresults for narrow and broad secrecy jurisdiction lists are examined anddifferent stocks and flows are compared, a number of interesting patternsemerge. There is considerable variation among developing countrygroups both by income and by region. Analyses that fail to take this intoaccount will be incomplete. We highlight a few other key points below.First, the trade flows of developing countries are generally moreexposed (as a share of total economic links) to the effects of secrecyjurisdictions than are the trade flows of high-income OECD countries,which we take as a benchmark throughout. This is particularly pronouncedin developing-country exports and in East and South Asia mostof all. The differences in exposure between narrow and broad secrecyFigure 11.1. Intensity of Economic Exposure: Implied Ratios of Secrecy Jurisdiction Shares toGDP, by Income Group% of GDP5045403530252015105low incomelower-middle incomeupper-middle incomehigh-income OECD countries0narrow SJ broad SJ narrow SJ broad SJ narrow SJ broad SJ narrow SJ broad SJexports (goods) imports (goods) portfolio investment bank claimsimportance of economic and financial links with SJsSources: Trade data: UN Comtrade (United Nations Commodity Trade Statistics Database), Statistics Division, Departmentof Economic and Social Affairs, United Nations, New York, http://comtrade.un.org/db/. Portfolio investment data: IMF,“Coordinated Portfolio Investment Survey,” Washington, DC, http://www.imf.org/external/np/sta/pi/cpis.htm. Data onbank claims: BIS 2008.Note: SJ = secrecy jurisdiction. “Narrow” and “broad” refer to shorter or longer lists of secrecy jurisdictions (see the text).