Does trade openness systematically imply bigger governments, as proposed by Rodrik (1998)? This paper presents a novel and more refined explanation for when and why international trade may enlarge the public sector. We propose that trade openness is associated with bigger governments if (i) the...

The purpose of this study is twofold. The first is to develop a new composite index of globalization based on data on 158 economies over the period 2006−2014. The second intention is to use the new index to evaluate empirically the possible effects of globalization on economic growth and...

Purpose The purpose of this paper is to propose policy recommendations that resort to the domestic market to achieve inclusive growth from an open perspective. Design/methodology/approach How will economic globalization based on domestic demand affect economic growth and income distribution in...

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 smaller while competing with the world. We are...

The paper investigates the impact of globalization (overall, economic, social, and political) on economic growth of South Asian countries over the period from 1971 to 2014 employing cross-sectional dependence test, Cross sectionally Augmented Dickey–Fuller (CADF) unit root test (Pesaran in J...