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Openness and Mexico's subnational governments size: Evidence from a panel of Mexican states

Author

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  • René Cabral

    (Tecnológico de Monterrey, México)

Abstract

We examine the relation between government size and economic openness employing a panel of the 32 Mexican states between 1996 and 2006. Making use of two alternative measures of capital and labor openness and employing alternative econometric specifications, we first find systematic positive effects of our openness measures on the size of states’ total government spending. Thereafter, we focus on three subcategories of spending associated with social welfare: education, health and poverty alleviation. We find FDI flows are not statistically relevant determinants of social spending, but labor openness has a significant and greater impact on some of the aforementioned categories than on total spending.

Suggested Citation

  • René Cabral, 2016. "Openness and Mexico's subnational governments size: Evidence from a panel of Mexican states," Contaduría y Administración, Accounting and Management, vol. 61(4), pages 762-776, Octubre-D.
  • Handle: RePEc:nax:conyad:v:61:y:2016:i:4:p:762-776
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    File URL: http://www.cya.unam.mx/index.php/cya/article/view/1207
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    Cited by:

    1. Ahmet Tekin & İbrahim Tuğrul Çınar & Ersin Nail Sağdıç & Fazlı Yıldız, 2023. "Trade Openness and Sustainable Government Size: Evidence from Central and Eastern European Countries," Sustainability, MDPI, vol. 15(15), pages 1-17, August.

    More about this item

    Keywords

    Capital inflows; Migration; Globalization; Government size; Panel data methods; Mexico;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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