Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

A push-pull-brake model of capital flows is used to study the effects of fiscal policy changes on private capital flows to emerging Europe during 2000-07. In the model, countercyclical fiscal policy has two opposing effects on capital inflows: (i) a conventional absorptionreducing effect, as a tighter fiscal stance acts as a brake on capital flows; and (ii) an unconventional absorption-boosting effect, as a tighter fiscal stance increases investor confidence in the country. The empirical results suggest that push factors (low returns in flow-originating countries), rather than pull factors (high returns in flow-destination countries), drove most of the private capital flows to emerging Europe. And active countercyclical fiscal policy once the fiscal stance is adjusted for the automatic effects on the fiscal position of both internal and external imbalances acted as a brake on capital inflows. However, the empirical results also suggest that, even abstracting from political feasibility and fiscal policy lag considerations, countercyclical fiscal policy alone is unlikely to be an effective policy tool to put an effective brake on sudden capital flow surges.

Financial crises --- Capital movements --- Capital flight --- Capital flows --- Capital inflow --- Capital outflow --- Flight of capital --- Flow of capital --- Movements of capital --- Balance of payments --- Foreign exchange --- International finance --- Government policy --- Europe --- Economic policy. --- Economic conditions. --- Exports and Imports --- Macroeconomics --- Public Finance --- Production and Operations Management --- Model Evaluation and Selection --- Business Fluctuations --- Cycles --- Fiscal Policy --- International Investment --- Long-term Capital Movements --- Macroeconomics: Production --- International economics --- Capital inflows --- Fiscal stance --- Fiscal policy --- Output gap --- Production --- Economic theory --- Bosnia and Herzegovina

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

The paper contributes to the discussion about the revenue implications of trade reform by assessing the approximate fiscal revenue impact of different liberalization formulae under consideration in multilateral trade negotiations for a group of low- and middle-income countries. The study applies a linear optimization framework to data for bound tariffs, applied tariffs, and imports at the HS-6 digit level for 58 developing countries, and simulates results for different sets of import demand elasticities and developing country "flexibilities." While only a small number of countries face a significant impact, results point toward the need for complementary fiscal measures in the countries most affected by revenue loss.

Electronic books. -- local. --- Free trade. --- Tariff. --- Commerce --- Business & Economics --- International Commerce --- Ad valorem tariff --- Border taxes --- Customs (Tariff) --- Customs duties --- Duties --- Fees, Import --- Import controls --- Import fees --- Tariff on raw materials --- Free trade and protection --- Trade, Free --- Trade liberalization --- Commercial policy --- Indirect taxation --- Revenue --- Customs administration --- Favored nation clause --- Non-tariff trade barriers --- Reciprocity (Commerce) --- International trade --- Exports and Imports --- Taxation --- Economic Theory --- Trade Policy --- International Trade Organizations --- Trade: General --- Agriculture: Aggregate Supply and Demand Analysis --- Prices --- Public finance & taxation --- International economics --- Economic theory & philosophy --- Tariffs --- Imports --- Taxes on trade --- Demand elasticity --- Tariff --- Elasticity --- Economics --- Hong Kong Special Administrative Region, People's Republic of China