05317oam 22012734 450 991078840240332120230828235822.01-4623-9724-71-4527-1988-81-283-51735-31-4519-0799-09786613829801(CKB)3360000000443906(EBL)3012530(SSID)ssj0001477269(PQKBManifestationID)11857328(PQKBTitleCode)TC0001477269(PQKBWorkID)11452545(PQKB)10833613(OCoLC)535146924(MiAaPQ)EBC3012530(IMF)WPIEE2006003(EXLCZ)99336000000044390620020129d2006 uf 0engur|n|---|||||txtccrHow Does Trade Openness Influence Budget Deficits in Developing Countries? /Jean-Louis Combes, Tahsin Saadi SedikWashington, D.C. :International Monetary Fund,2006.1 online resource (22 p.)IMF Working Papers"January 2006.""This paper is forthcoming in the Journal of development studies."--Abstract.1-4518-6263-6 Includes bibliographical references (p. 17-20).""Contents""; ""I. INTRODUCTION""; ""II. THEORETICAL EFFECTS OF TRADE OPENNESS ON BUDGET DEFICITS""; ""III. THE MEASURE OF TERMS OF TRADE INSTABILITY""; ""IV. THE MEASURE OF THE REVEALED TRADE POLICY""; ""V. THE ECONOMETRIC STRATEGY""; ""VI. CONCLUSIONS""; ""APPENDIX I""; ""REFERENCES""This paper analyzes the effects of trade openness on budget balances by distinguishing the effects of natural openness from those of trade-policy induced openness. Using the GMMsystem estimator, the econometric analysis focuses on 66 developing countries during 1974-98. The results show that trade openness increases a country's exposure to external shocks regardless of its underlying causes. This reinforces the adverse effects of terms of trade instability on budget balances. However, trade openness also influences budget balances through several other channels: corruption, income inequalities, etc. The paper shows that these additional effects of natural openness and trade-policy induced openness on budget balances go in opposite directions: the former deteriorates budget balances whereas the latter improves them.IMF Working Papers; Working Paper ;No. 2006/003Terms of tradeDeveloping countriesBudgetDeveloping countriesBudgetingimfExports and ImportsimfPublic FinanceimfNational Deficit SurplusimfInternational Economic Order and IntegrationimfTrade PolicyimfInternational Trade OrganizationsimfNational BudgetimfBudget SystemsimfEmpirical Studies of TradeimfDebtimfDebt ManagementimfSovereign DebtimfNational Government Expenditures and Related Policies: GeneralimfBudgeting & financial managementimfInternational economicsimfPublic finance & taxationimfBudget planning and preparationimfTerms of tradeimfTrade policyimfGovernment debt managementimfExpenditureimfBudgetimfEconomic policyimfnternational cooperationimfCommercial policyimfDebts, PublicimfExpenditures, PublicimfDeveloping countriesCommercial policyTerms of tradeBudgetBudgetingExports and ImportsPublic FinanceNational Deficit SurplusInternational Economic Order and IntegrationTrade PolicyInternational Trade OrganizationsNational BudgetBudget SystemsEmpirical Studies of TradeDebtDebt ManagementSovereign DebtNational Government Expenditures and Related Policies: GeneralBudgeting & financial managementInternational economicsPublic finance & taxationBudget planning and preparationTerms of tradeTrade policyGovernment debt managementExpenditureBudgetEconomic policynternational cooperationCommercial policyDebts, PublicExpenditures, PublicCombes Jean-Louis655579Saadi Sedik Tahsin1548105International Monetary Fund.Fiscal Affairs Dept.DcWaIMFBOOK9910788402403321How Does Trade Openness Influence Budget Deficits in Developing Countries3849995UNINA