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Export Product Concentration and De Facto Fiscal Space: Does Openness to International Trade matter?

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  • Gnangnon Sena Kimm

    (World Trade Organization, 154, Rue de Lausanne, Geneva1211, Switzerland)

Abstract

This paper investigates the relationship between trade and fiscal space by examining whether export product concentration matters for fiscal space, in particular the “De Facto Fiscal Space”. The analysis relies on a panel dataset comprising 145 countries, including both developed and developing countries over the period 1984–2010. The empirical results suggest that on average, countries with a high level of export product concentration tend to experience a greater fiscal space. In particular, the impact of export concentration on fiscal space depends on countries’ level of development, and is higher, the lower the countries’ level of development. In addition, the positive impact of export concentration on fiscal space is higher, the higher the countries’ degree of openness to international trade.

Suggested Citation

  • Gnangnon Sena Kimm, 2018. "Export Product Concentration and De Facto Fiscal Space: Does Openness to International Trade matter?," Global Economy Journal, De Gruyter, vol. 18(1), pages 1-12, March.
    • Handle: RePEc:bpj:glecon:v:18:y:2018:i:1:p:12:n:2
    DOI: 10.1515/gej-2017-0092
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    More about this item

    Keywords

    export product concentration; openness to international trade; De Facto Fiscal Space;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General

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