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Openness and government size: A new empirical assessment

Author

Listed:
  • Helder Ferreira de Mendonça

    (Fluminense Federal University)

  • Ana Jordânia de Oliveira

    (Candido Mendes University)

Abstract

This paper provides a new empirical assessment of the relationship between openness and government size. Based on a sample of 124 countries for the period from 1980 to 2016, we estimate several panel data regressions. By the use of measures of trade openness, financial openness, and globalization, as well as samples of developing countries and high-income countries, we investigate the validity of compensation and efficiency hypotheses. The findings denote that while financial openness is not relevant to government size, trade openness and globalization cannot be neglected in the case of developing countries.

Suggested Citation

  • Helder Ferreira de Mendonça & Ana Jordânia de Oliveira, 2019. "Openness and government size: A new empirical assessment," Economics Bulletin, AccessEcon, vol. 39(2), pages 982-995.
    • Handle: RePEc:ebl:ecbull:eb-19-00317
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    References listed on IDEAS

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    More about this item

    Keywords

    trade openness; financial openness; globalization; government size;
    All these keywords.

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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