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A Replication Study of “Openness, Country Size, and Government Size†(Journal of Public Economics 2009)

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  • Andrew Musau

Abstract

Ram ( Journal of Public Economics , 93, 213-218, 2009) questions the body of influential research suggesting that there is a negative association between country size and government size, and country size and openness, which may account for the positive association between openness and government size. Using data from the Penn World Table (PWT), he shows that while openness is positively related to government size, fixed-effects estimates show little evidence of the aforementioned negative associations. We replicate Ram’s results using his data set and a newer revised version of the same data set and find that the ensuing government size–openness association is dependent on the version of the PWT data and the composition of the sample. In addition, we find some evidence of a negative association between country size and government size in the larger sample, but there remains no clear association between openness and country size.

Suggested Citation

  • Andrew Musau, 2019. "A Replication Study of “Openness, Country Size, and Government Size†(Journal of Public Economics 2009)," Public Finance Review, , vol. 47(4), pages 775-792, July.
    • Handle: RePEc:sae:pubfin:v:47:y:2019:i:4:p:775-792
    DOI: 10.1177/1091142118765786
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    References listed on IDEAS

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    1. Ram, Rati, 2009. "Openness, country size, and government size: Additional evidence from a large cross-country panel," Journal of Public Economics, Elsevier, vol. 93(1-2), pages 213-218, February.
    2. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
    3. Johnson, Simon & Larson, William & Papageorgiou, Chris & Subramanian, Arvind, 2013. "Is newer better? Penn World Table Revisions and their impact on growth estimates," Journal of Monetary Economics, Elsevier, vol. 60(2), pages 255-274.
    4. World Bank, 2015. "World Development Indicators 2015," World Bank Publications - Books, The World Bank Group, number 21634, December.
    5. Breton, Theodore R., 2012. "Penn World Table 7.0: Are the data flawed?," Economics Letters, Elsevier, vol. 117(1), pages 208-210.
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    1. Rati Ram, 2019. "Reply to “A Replication Study of ‘Openness, Country Size, and Government Size’ (Journal of Public Economics 2009)â€," Public Finance Review, , vol. 47(4), pages 793-801, July.

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