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Financial Openness And Growth: 2000-2010, Amy Kennedy

Pepperdine Policy Review

In light of the recent financial crisis and economic downturn, policymakers are looking at other options to raise tax revenue. One such option proposed is a financial transaction tax which would tax various cross-border transactions such as banking or securities transactions. Yet, economic growth is arguably the better option for increasing revenue. One might further argue that a tax will lead to less revenue through reduced growth resulting from investors investing money in other tax free arenas. Therefore, this study looks at the relationship between financial openness and annual real GDP per capita growth to ascertain the effect of financial …