The relationship between trade openness and public expenditure. The spanish case, 1960-2000
AbstractThe aim of this paper is to empirically determine whether there is a relation between trade openness and public expenditure in Spain using annual long-run data from 1960 to 2000, a period that has witnessed an accelerated process both of openness to the international markets of goods and services and of public sector growth. Results, based on the cointegration of Johansen, reveal a long-term relationship between public expenditure and both trade openness and several protection indicators. We complete our investigation with a robustness study and a stability analysis to check whether the aforementioned relationship is affected or not by structural changes.
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Bibliographic InfoPaper provided by Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza in its series Documentos de Trabajo with number dt2009-06.
Date of creation: Jun 2009
Date of revision:
trade openness; public expenditure; cointegration;
Find related papers by JEL classification:
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
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