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 … between openness and the size of government might be mediated by the quality of its public sector. While countries with weak …

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 … between openness and the size of government might be mediated by the quality of its public sector. While countries with weak …

This paper investigates the relationship between trade openness and the size of government, both theoretically and … empirically. We show that openness can increase the size of governments through two channels: (1) a terms of trade externality … between openness and the size of government and test whether it is consistent with the terms of trade externality or the …