How Does Trade Openness Influence Budget Deficits in Developing Countries?

How Does Trade Openness Influence Budget Deficits in Developing Countries?
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... READ MORE...

Publication date: January 2006
ISBN 9781451862638
$15.00

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