05536oam 22013694 450 991097247420332120250426110702.0978661382980197814623972421462397247978145271988714527198889781283517355128351735397814519079951451907990(CKB)3360000000443906(EBL)3012530(SSID)ssj0001477269(PQKBManifestationID)11857328(PQKBTitleCode)TC0001477269(PQKBWorkID)11452545(PQKB)10833613(OCoLC)535146924(IMF)WPIEE2006003(MiAaPQ)EBC3012530(IMF)WPIEA2006003WPIEA2006003(EXLCZ)99336000000044390620020129d2006 uf 0engur|n|---|||||txtccrHow Does Trade Openness Influence Budget Deficits in Developing Countries? /Jean-Louis Combes, Tahsin Saadi Sedik1st ed.Washington, 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.9781451862638 1451862636 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 countriesBudget planning and preparationimfBudget SystemsimfBudgetimfBudgeting & financial managementimfBudgetingimfCommercial policyimfDebt ManagementimfDebtimfDebts, PublicimfEconomic policyimfEmpirical Studies of TradeimfExpenditureimfExpenditures, PublicimfExports and ImportsimfGovernment debt managementimfInternational Economic Order and IntegrationimfInternational economicsimfInternational Trade OrganizationsimfNational BudgetimfNational Deficit SurplusimfNational Government Expenditures and Related Policies: GeneralimfNternational cooperationimfPublic finance & taxationimfPublic FinanceimfSovereign DebtimfTerms of tradeimfTrade PolicyimfTrade policyimfDeveloping countriesCommercial policyTerms of tradeBudgetBudget planning and preparationBudget SystemsBudgetBudgeting & financial managementBudgetingCommercial policyDebt ManagementDebtDebts, PublicEconomic policyEmpirical Studies of TradeExpenditureExpenditures, PublicExports and ImportsGovernment debt managementInternational Economic Order and IntegrationInternational economicsInternational Trade OrganizationsNational BudgetNational Deficit SurplusNational Government Expenditures and Related Policies: GeneralNternational cooperationPublic finance & taxationPublic FinanceSovereign DebtTerms of tradeTrade PolicyTrade policyCombes Jean-Louis655579Saadi Sedik Tahsin1623481International Monetary Fund.Fiscal Affairs Dept.DcWaIMFBOOK9910972474203321How Does Trade Openness Influence Budget Deficits in Developing Countries4372031UNINA