Work detail

Factors influencing the origin and evolution of the tax havens

Author: Bc. Tomáš Ulrich
Year: 2011 - summer
Leaders: doc. Petr Janský Ph.D.
Work type: Bachelors
Language: English
Pages: 54
Awards and prizes:
Abstract: This thesis examines tax havens, specifically it searches for factors which influence
the probability that a given country becomes tax haven. Nowadays there are roughly
40 tax havens all over the world. The main target of this thesis is to find out what
effects does the demographic, economic and geographic indicators have on their existence.
By using the extensive dataset for the period of 6 years we illustrate the
time development and possible trends. With the help of several standard regression
methods we confirmed the already existing hypothesis that tax havens are inclined
to be small and more affluent jurisdictions. Moreover, the results indicate that the
quality of governance in tax havens is substantially higher than in other countries.
This is not only a short-term phenomenon, it showed to be valid for a longer time
period. The discovered outcomes are statistically significant and robust to the use
of other relevant variables. Tax havens also scores much better on the measures
of corruption than other countries. Our conclusions help to clarify the causes why
certain jurisdictions become tax havens, and at the same time they provide recommendations
for the concerning economic policy.


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Patria Finance