Chinese capital flows and offshore financial centers

Sharman, J. C.

doi:10.1080/09512748.2012.685093

Cited by 38 publications

(41 citation statements)

References 18 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…, 24). This aspect is central to Sharman's () analysis and it was recognised by Jardine Matheson and other Hong Kong firms, noted in the ADB project discussed above and continues to be encouraged by law firms in the US (see, e.g. Greguras et al.…”

Section: Situating the Ofc For China's Fdimentioning

confidence: 92%

From Road Town to Shanghai: Situating the Caribbean in Global Capital Flows to China

Vlcek¹

2013

The British Journal of Politics and International Relations

View full text Add to dashboard Cite

This article:• Assesses the role of Caribbean offshore financial centres (OFCs) in FDI flows to China. • Argues the OFC provides financial intermediation services beyond simply tax minimisation. • Demonstrates a similar use of the OFC in other developing economies.• Suggests the position of the OFC in global finance continues to evolve. This article examines the prominent location of offshore financial centres (OFCs) among the leading origin and destination points for foreign direct investment (FDI) to China. The OFC (characterised as a tax haven) frequently has been ignored or assumed out of analyses on Chinese FDI as simply servicing tax minimisation practices. This article challenges that assumption and emphasises the financial intermediation role performed by the Caribbean OFC beyond practices of tax arbitrage. Through the use of an international business company (IBC) registered in an OFC these jurisdictions perform several functions for investors, to include providing access to foreign capital markets, reducing tax obligations across multiple jurisdictions and concealing potential politically-sensitive beneficial ownership of the investment. This assessment for the role of the OFC in circuits of global capital involving FDI to China demonstrates that China's relationship with the OFC is different from that experienced by Europe and North America.

show abstract

Section: Situating the Ofc For China's Fdimentioning

confidence: 92%

From Road Town to Shanghai: Situating the Caribbean in Global Capital Flows to China

Vlcek¹

2013

The British Journal of Politics and International Relations

View full text Add to dashboard Cite

show abstract

“…Some view offshore activity primarily as a mechanism for political insiders to hide the proceeds of corruption and state asset theft, and for wealthy individuals and firms to deprive developing economies and governments of desperately needed investment capital and tax revenue (Baker ; Brovkin ; Ding ; Oxfam ; Shaxson ). In contrast, others downplay these factors, arguing that OJs augment the competiveness of emerging market firms by allowing them to harness stronger overseas financial and legal institutions, often by facilitating overseas listings (Sharman ; Stal and Cuervo‐Cazurra ; Sutherland and Matthews ). Clearly all of these motivations and effects come into play in various situations; however, we know little about their relative importance, even in the context of the most heavily studied cases such as China (Vlcek ).…”

Section: Offshore Jurisdictions In the Global Financial Networkmentioning

confidence: 99%

“…A small number of studies have examined offshore FDI by German (Weichenrieder and Mintz ); American (Lewellen and Robinson ; Desai et al. ); and Brazil, Russia, India, and China (or BRIC) economy firms (Ledyaeva, Karhunen, and Whalley ; Sharman ; Stal and Cuervo‐Cazurra ; Sutherland and Matthews ; Vlcek ). These have revealed important structures, notably the centrality of the Netherlands as a tax treaty‐shopping jurisdiction for OECD firms (see Weyzig ), and large‐scale round‐trip FDI (for poorly understood reasons, see earlier discussion) by Chinese, Russian, and Indian firms in their home economies via Hong Kong, Cyprus, and Mauritius, respectively, and the Caribbean.…”

Section: Offshore Jurisdictions In the Global Financial Networkmentioning

confidence: 99%

“…Indeed, a superficial consensus regarding the scope of the offshore problem belies a lack of scholarly agreement on such fundamental issues as whether offshore activity is attracted to or repelled by financial regulation, or the extent to which its organization should be understood with reference to a timescale of centuries as opposed to an individual business day (Baker ; Palan et al. : Roberts ; Sharman ; Shaxson ; Vlcek ).…”

mentioning

confidence: 99%

See 1 more Smart Citation

Regional Blocks and Imperial Legacies: Mapping the Global Offshore FDI Network

Haberly

Wójcik

2014

Economic Geography

View full text Add to dashboard Cite

While foreign direct investment (FDI) is generally assumed to represent long‐term investments within the real economy, approximately 30–50 percent of global FDI is accounted for by networks of offshore shell companies created by corporations and individuals for tax and other purposes. To date, there has been limited systematic research on the global structure of these networks. Here we address this gap by employing principal component analysis to decompose the global bilateral FDI anomaly matrix into its primary constituent subnetworks. We find that the global offshore FDI network is highly globalized, with a centralized core of jurisdictions in Northwest Europe and the Caribbean exercising a largely homogenous worldwide influence. To the extent that the network is internally differentiated, this appears to primarily reflect a historic layering of social and political relationships. We identify four primary offshore FDI subnetworks, bearing the imprint of four key processes and events: European, particularly UK colonialism, the post–WWII hegemonic alliance between the United States and Western Europe, the fall of Soviet communism, and the rise of Chinese capitalism. We also find evidence of qualitative, but not quantitative, variation in offshore FDI based on national rule of law and communist history.

show abstract

“…These jurisdictions, at least on paper, are therefore important host and source 4 countries for MNE activity. The high concentration of FDI to THOFCs (Sharman, 2012), particularly in the case of outward FDI from emerging markets, should make them of special interest to the IB research agenda, given its preoccupation with the MNE. This, however, has not been the case.…”

Section: Financial Geography and Internalization Theorymentioning

confidence: 99%

The economic geography of offshore incorporation in tax havens and offshore financial centres: the case of Chinese MNEs

et al. 2013

View full text Add to dashboard Cite

. (2015) 'The economic geography of oshore incorporation in tax havens and oshore nancial centres : the case of Chinese MNEs.', Journal of economic geography., 15 (1). pp. 103-128. Further information on publisher's website:http://dx.doi.org/10.1093/jeg/lbt040Publisher's copyright statement:This is a pre-copyedited, author-produced PDF of an article accepted for publication in Journal of Economic Geography following peer review. The version of record Peter J. Buckley, Dylan Sutherland, Hinrich Voss, and Ahmad El-Gohari (2015) 'The economic geography of oshore incorporation in tax havens and oshore nancial centres : the case of Chinese MNEs.' Journal of Economic Geography, 15(1), 103-128 is available online at: http://joeg.oxfordjournals.org/content/early/2013/12/12/jeg.lbt040. Additional information:Use policyThe full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details.

show abstract

Chinese capital flows and offshore financial centers

Cited by 38 publications

References 18 publications

From Road Town to Shanghai: Situating the Caribbean in Global Capital Flows to China

From Road Town to Shanghai: Situating the Caribbean in Global Capital Flows to China

Regional Blocks and Imperial Legacies: Mapping the Global Offshore FDI Network

The economic geography of offshore incorporation in tax havens and offshore financial centres: the case of Chinese MNEs

Contact Info

Product

Resources

About