Capturing economic value

The gross revenues of the third-party gaming services industry were approximately $3.0 billion in 2009, most of which was captured in the developing countries where these services were produced. In comparison, the global coffee market, on which many developing countries are highly dependent, was worth over $70 billion–but only $5.5 billion was captured by the developing countries that produced the coffee beans.

The document is here and for the pointer I thank Pin-Quan Ng.

Comments

Gold farming in MMORPG's is a great tool for development? Wow.

Could it be that you would locate a gaming service in a jurisdiction with a non-existent tax system, and where the service was legal, and this woud explain the "location" of the rents?

Can't move coffee bean plants to San Franscisco for what is essentially a commodity business with brand creation and location being significant value additions to the product.

Yep. Regulatory arbitrage when you can do it, monopoly rents when you can't. Ain't it grand?

If it is prohibited, it isn't regulatory arbitrage.
You could call drug smuggling regulatory arbitrage too.

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