Social and Behavioral Sciences Commons^™

Outlaw Heaven: Why States Become Tax Havens, Charles A. Dainoff

Theses and Dissertations--Political Science

It is the argument of this dissertation that states become tax havens as a conscious economic development strategy. These states – more properly referred to as "jurisdictions" because some lack the sovereignty of the traditional Westphalian state – do not have the natural resources or the population to pursue more traditional economic development strategies, but they do have the ability to write or implement laws that create a virtual resource: banking secrecy. These jurisdictions are able to carry out this strategy because they tend to be well-governed, stable, and relatively wealthy, making them attractive partners for the international banking, legal, …