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Over the years, substantial theoretical and empirical studies have been carried out on the trade opennessgovernment size nexus. While a strand of the literature reported positive linkage, the other suggests otherwise. This study contributes to the debate by examining this relationship for...
Persistent link: https://www.econbiz.de/10010940490
This paper provides additional insights on the relationship between government size and trade openness using a panel of countries drawn from the World Development Indicators and the Penn World Tables 7.0 from 1962 to 2009. It is shown that the compensation hypothesis proposed by Rodrik (1998)...
Persistent link: https://www.econbiz.de/10011108530
This paper provides empirical evidence of the relation between trade openness, capital openness and government expenditures in a cross sectional time-series context. It is shown that capital openness is significantly and negatively related to government expenditures in line with the conventional...
Persistent link: https://www.econbiz.de/10011109366
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This paper discusses how an industrialized country could defend the wages and social benefits of its unskilled workers against wage competition from immigrants. It shows that fixing social standards harms the workers and that fixing social replacement incomes implies migration into unemployment....
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The impact of globalization on developing countries has been debated: While the "compensation hypothesis" suggests that … globalization increases the need for public employees, the "efficiency hypothesis" states that the size of government should be … developing countries and new innovative bureaucracy and globalization indicators to find robust evidence for the "efficiency …
Persistent link: https://www.econbiz.de/10012161643