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Trade openness and government size

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Author Info
Benarroch, Michael
Pandey, Manish

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Abstract

We examine whether trade openness influences government size. Using panel data, we find no evidence of a positive relationship. Rather, causality tests show that larger government size leads to lower openness, the opposite of what Rodrik [Rodrik, Dani, 1998, Why do more open economies have bigger governments? Journal of Political Economy 106, 997-1032.] hypothesized.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4SX9FVM-1/2/ec79d41b2012c3855a66af498e1f95cb
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Publisher Info
Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 101 (2008)
Issue (Month): 3 (December)
Pages: 157-159
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Handle: RePEc:eee:ecolet:v:101:y:2008:i:3:p:157-159

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Web page: http://www.elsevier.com/locate/ecolet

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Related research
Keywords: Government size Trade openness Causality;

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