Hide and Protect : A Role of Global Financial Secrecy in Shaping Domestic Institutions
This paper reviews the literature that explores the drivers and effects of financial secrecy on emerging economies. It shows that most of the research on financial secrecy has been focused on issues of tax avoidance, neglecting the problems of inst...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/512681596468706087/Hide-and-Protect-A-Role-of-Global-Financial-Secrecy-in-Shaping-Domestic-Institutions http://hdl.handle.net/10986/34280 |
| Summary: | This paper reviews the literature that
explores the drivers and effects of financial secrecy on
emerging economies. It shows that most of the research on
financial secrecy has been focused on issues of tax
avoidance, neglecting the problems of institutional
arbitrage that go beyond taxation issues. The paper
discusses the limits of the institutionalist paradigm that
treats businesses solely as rule-takers and calls for more
attention to business agency and responsibility. Discussions
about corporate social responsibility in emerging economies
should incorporate thinking about the potential role that
businesses, and especially big corporations, could play in
promoting more effective institutions at home. Further
research is needed to understand the political and
institutional effects of global financial secrecy at the
domestic level. The paper suggests some promising avenues
for future research as well as new items to be included on
the policy-making agenda in relation to financial secrecy. |
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