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...

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 GMM-system estimator, the econometric analysis focuses on 66 developing countries during 1974-98. The results show that...

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...

This paper analyses the effects of trade openness on budget balances by distinguishing the effects of natural openness from those of trade policy. Revealed indicators of natural openness and trade policy are computed. Using GMM-system estimator, the econometric analysis focuses on 66 developing...

Intro -- 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.