Professor James Hines
OFFSHORE finance centres like Jersey play a key role in supporting economic growth around the world, according to an independent report.
The report entitled International Finance Centres and the World Economy has been written by highly-regarded US economist Professor James Hines.
Prof Hines, of the University of Michigan and the National Bureau of Economic Research, compiled his report using all the work published on offshore finance centres over the last 15 years.
Known as the Hines Report, it follows on from the Foot Review published last week which found that the Crown dependencies injected $332.5 billion into UK banks in the second quarter of 2009, with Jersey providing around $218.3 billion of that total.
Prof Hines says in his report: ‘The evidence indicates that offshore centres contribute to financial development and stability in neighbouring countries, encouraging investment, employment, and other aspects of business development. They have salutary effects on tax competition, promote good government, and enhance economic growth elsewhere in the world.’
Article posted on 7th November, 2009 - 3.01pm
3 Article Comments
So many of the opaque basket case securitisations, SIVs and other vehicles of the “originate and distribute” model were domiciled offshore. They encouraged a huge collapse in lending standards which we are all paying for now in a downturn caused by the excesses of the Finance industry. I refer Professor Hines to the report of the Federal Reserve bank (San Francisco division) which nails this far better than his comments. So yes the offshore finance centres have very much played there part in propagating practises which have led to the deepest and longest downturn since the great recession.
Report abuse
Pity we can’t do the same here!!!
Report abuse
What economic growth would that be?
Does he not realise we are in recession – the inverse of growth?
Report abuse