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

Sena Kimm Gnangnon
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Sena Kimm Gnangnon: World Trade Organization, 154, Rue de Lausanne, Geneva 1211, Switzerland

Global Economy Journal (GEJ), 2018, vol. 18, issue 1, 1-12

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.

Keywords: export product concentration; openness to international trade; De Facto Fiscal Space (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1515/GEJ-2017-0092

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