Trade openness and government size

We examine whether trade openness influences government size. Using panel data, we find no evidence of a positive relationship. Rather, causality tests show that larger government size leads to lower openness, the opposite of what Rodrik [Rodrik, Dani, 1998, Why do more open economies have bigger governments? Journal of Political Economy 106, 997-1032.] hypothesized.

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Year of publication:	2008
Authors:	Benarroch, Michael ; Pandey, Manish
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 101.2008, 3, p. 157-159
Publisher:	Elsevier
Subject:	Government size Trade openness Causality

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005288228