TRADE LIBERALIZATION AND FISCAL STANCE IN SELECTED DEVELOPING COUNTRIES: A GRANGER CAUSALITY APPROACH IN VAR FRAMEWORK

Bismillah, Shahnawaz Malik and Muhammad Ramzan Sheikh
Additional contact information
Bismillah: PhD Scholar, The Women University Multan, Pakistan
Shahnawaz Malik: Professor (Rtd), Department of Economics, The Women University, Multan, Pakistan
Muhammad Ramzan Sheikh: Associate Professor, School of Economics Bahauddin Zakariya University, Multan, Pakistan

Bulletin of Business and Economics (BBE), 2022, vol. 11, issue 2, 134-159

Abstract: The main purpose of the study is to conduct a causality analysis of trade liberalization and fiscal stance. For this purpose, causality between tax-trade, government expenditures-trade, external debt-trade and official development assistance-trade have been examined in selected developing countries. The study has applied the three-step procedure of Granger causality in the VAR framework. The period is taken from 1996 to 2019. The results show that there is bidirectional causality between trade liberalization and fiscal stance in nearly all countries while short-run causality differs in the group of countries. The study suggests that the policymakers may formulate policies of trade openness which may enhance the tax revenues as well as government expenditures in developing countries.

Keywords: Trade liberalization; Tax; Government Expenditures; External Debt (search for similar items in EconPapers)
JEL-codes: B17 H20 H30 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://bbejournal.com/index.php/BBE/article/view/347/318 (application/pdf)
https://bbejournal.com/index.php/BBE/article/view/347 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rfh:bbejor:v:11:y:2022:i:2:p:134-159

Access Statistics for this article

Bulletin of Business and Economics (BBE) is currently edited by Dr. Muhammad Irfan Chani

More articles in Bulletin of Business and Economics (BBE) from Research Foundation for Humanity (RFH) Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Muhammad Irfan Chani ().