Trade openness and government size
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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- Tom Krebs & Pravin Krishna & William Maloney, 2005.
"Trade Policy, Income Risk, and Welfare,"
NBER Working Papers
11255, National Bureau of Economic Research, Inc.
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1388, C.E.P.R. Discussion Papers.
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