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...

In spite of the rapidly growing research on fiscal multipliers over the recent years, little evidence has been so far accumulated in developing and emerging economies. This paper investigates the nature and the size of fiscal multipliers in Central and Eastern European Countries (CEEC). Unlike...

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.