The University of Amsterdam
Nov 12th, 2017
Nature, origins and political consequences of corporate networks in modern economic life?
- Shared directors
E.M. Heemskerk, F.W. Takes, J. Garcia-Bernardo and M.J. Huijzer ‘Where is the global corporate elite? A large-scale network study of local and nonlocal interlocking directorates‘, Sociologica 2016(2): 1-31, 2016.
Mr. Jorge Paulo Lemann - Heinz - 3G Capital - AB Inbev - And another 70 positions
Vitali, Glattfelder and Battiston, The network of global corporate control, PloS one, 2011.
IDENTIFYING OFFSHORE FINANCIAL CENTERS
``Uncovering Offshore Financial Centers: Conduits and Sinks in the Global Corporate Ownership Network''
Javier Garcia-Bernardo, Jan Fichtner, Frank Takes, Eelke Heemskerk
OFFSHORE FINANCIAL CENTERS
Offshore Financial Center (OFC): jurisdiction (country) that attracts financial activities from abroad through low taxation and lenient regulation.
- So, which countries are OFCs?
- Definitions differ
- Highly contested and politicized
- FDI/GDP ratio approach: substantially more Foreign Direct Investment than expected based on GDP
- Problematic because:
- No exact investment flows, just dyadic relationships
- OFC homogeneity assumption
- Large countries hard to detect
- No difference in roles
sinks and conduits
We look at which countries are used disproportionally in transnational ownership chains.
- 200 million companies
- 70 million ownership relationships
- 10 million transnational chains
sink-OFFshore financial centers
sinks are specialized geographically
siNKS ARE RELATIVELY STABLE OVER TIME
conduit-OFFshore financial centers
decline of the netherlands
- The Netherlands is the conduit between European companies and Luxembourg, in the middle of 23% country chains.
- Hong Kong (for China) and Luxembourg (for EU countries) serve as the main countries in the route to ``tax havens''.
- The United Kingdom is the conduit between European countries and former members of the British Empire, such as Hong Kong, Jersey, BVI and Bermuda.
- All conduit-OFCs are on our doorsteps, and are specialized geographically and sectorally.
This presentation: slides.com/jgarciab/offshorealert17
OffshoreAlert: sink and conduit OFCs
By Javier GB