Fiscal dependence on trade taxes and trade policy reform

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Abstract
The article focuses on fiscal implications of Structural Adjustment Loans (SALs), from an a priori standpoint and by reference to the experience of five countries. Three of these countries have had revenue enhancement after trade policy reforms, and the other two cases experienced revenue depletion. The central point which emerges from the study is that it is not clear that trade liberalisation leads to fiscal enhancement or fiscal depletion. Both a priori the orising and country analyses demonstrate that a range of outcomes is possible depending upon initial conditions and the components of any reform package.