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 …

size, openness and economic growth. In fact, more trade openness increases government size, which lays stabilizer role … openness from other side, where as per capita expenditure on public goods is lower, and large markets enjoy more productivity … and less incentives for large market to increase openness than the small markets. Finally, economic growth and government …

markets to insure themselves. In this paper we examine the relationship between government size, trade openness, and output …