Are Tax Havens Good Neighbours? FDI Spillovers and Developing Countries

Abstract

This paper investigates the impact of tax havens on non-tax haven countries in terms of foreign direct investment (FDI). We analyze the importance of agglomeration effects by including FDI inflow levels in tax havens and capture geographic spillovers by measuring proximity to the nearest tax haven. Our analysis yields several interesting findings. First, using panel data for 142 countries, we find evidence of positive spillovers from tax havens to nearby developing countries, but not to nearby developed countries. Second, restricting our panel to developing countries, we find the positive effect of tax haven FDI on developing countries to be robust. Third, we find that geographic distance matters for financial flows: developing countries which are the closest to a nearby tax haven benefit the most in terms of FDI inflows. This result is robust to accounting for spatial interdependence of FDI.     

Estimating the Effects of Conflict on Education in Côte d’Ivoire

Abstract

This article evaluates the effect of armed conflict on years of schooling in Côte d’Ivoire. We combine differences in conflict intensity across departments and differences across age cohorts to identify an individual’s indirect exposure to conflict. The difference-in-difference outcomes indicate that the average years of education for a school-going-age cohort is 0.94 years fewer compared to an older cohort in conflict-affected regions. We further use a set of victimisation indicators to identify the direct effect of conflict. Overall, the findings across different models suggest a drop in average years of education by a range of 0.2 to 0.9 fewer years. The estimated effect is larger for males and individuals between 19 and 22 years of age.     

INSTITUTIONAL LAYERING IN GOVERNING HEALTHCARE QUALITY

Since the 1980s, regulated markets and New Public Management have been introduced in the public sector across the world. How they have affected existing governance mechanisms such as self‐regulation and state regulation has remained largely unexplored, however. This article examines the origins and consequences of institutional layering in governing healthcare quality. Dutch health care, where a market‐based system has been introduced, is used as a case study. The results show that this market‐based system did not replace but modified existing institutional arrangements. As a result, hospitals have to deal with the fragmentation of quality demands. Using the concept of institutional layering, this study shows how different arrangements interact. As a consequence, the introduction of a certain policy reform will work out differently in different countries and policy sectors. Our ‘archaeological’ study in this layering can be seen as an example of how such incremental change can be studied in detail.     

The Challenges to Cooperation Posed by the Nexus of Terrorism and Organized Crime: Comparing the Situations Between the Andean and the Sahel Regions

The recent conflict in the Sahel area is another case where the nexus of terrorism and organized crime causes challenges to the international community. Comparing the situation with that of the Andean region brings forth the challenges faced when dealing with this type of conflict: the states’ weak presence in the remote regions, the insurgents’ ability to offer income and “security” to the people, immediate threat to international investments, unresolved political/regional issues, the marriage of convenience of insurgents/terrorists and organized crime, internal divisions of the insurgent groups and also ideologies surviving or suffering after the elimination of their leaders.