and began to integrate rapidly with the world economy. With the country’s recent accession to the World Trade Organization …

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 …

The current round of multilateral trade negotiations-the Doha Round-presents an opportunity for countries to reap the … benefits of trade liberalization. Unfortunately, a number of misconceptions about the likely impact of trade reforms has, in …) developing countries have much to gain from their own trade liberalization; (ii) preference erosion could be significant for some …

€™ trade policies and their development strategies. However, although greater trade openness promises faster growth for poor …Efforts to liberalize world trade are increasingly focusing on strengthening the links between low-income countriesâ …

account more vulnerable, penalizing exports and making imports dearer. After reviewing the "old" and "new" view on current … deficits; (ii) they run budget surpluses; (iii) the terms of trade improve; (iv) they are less open; and (v) GDP growth … declines. Monetary policy, financial development, per capita GDP, and the de jure exchange rate classification matter less …

in countries at a lower stage of economic development. We then turn to a more in-depth analysis of the post-1970 era … (notably, sudden stops in financial flows) for emerging markets, and with real external shocks (in particular, terms-of-trade …