Epifani, Paolo; Gancia, Gino A - C.E.P.R. Discussion Papers - 2007
This paper investigates the relationship between trade openness and the size of governments, both theoretically and … empirically. We argue that openness can increase the size of governments through two channels: (1) a terms of trade externality … openness and government size and we explore its determinants. Consistently with the terms of trade externality channel, we show …