The way exchange of information impacts money laundering : empirical analysis on how exchange of information agreements impacts trade gaps between tax havens

Abstract

Is there a trade gap between tax havens, and is this trade gap affected by exchange of information agreements? This thesis aims to show that value preserving objects can be used as a mean for money laundering or tax evasion across borders. This is done through trade gap and difference-in-differences analyses. The trade gap analyses show that there exists a positive trade gap and that this gap increases with the partner countries’ secrecy. The difference-in-differences analyses reveal that this gap starts to diminish slightly before and after an exchange of information agreement is signed. These trends were not observed in the robustness check when testing industrial diamonds and mineral ores/scraps.