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This paper investigates empirically the effect of import diversity on government size and provides evidence for the love of variety effect on government spending described in Hanslin (2008). I argue that crowding out of firms is an important cost of public good provision. However, due to the...
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investigate the relation between firms' trading activities (importing, exporting or both) and productivity. We find important self … correlated within firms, failing to control for the importing activity leads to overstated average productivity premia of … exporters. -- Trade openness ; Firms' Heterogeneity ; Productivity …
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The literature has identified that countries with higher levels of openness tend to present a larger government sector as a way to reduce the risks to the economy that openness entails. This paper argues that there are a number of policies that can mitigate trade-induced risks, many of which do...
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