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The relationship between trade openness and public expenditure. The spanish case, 1960-2000

Author

Listed:
  • M� Dolores Gadea Rivas

    (Department of Applied Economics. School of Economics. University of Zaragoza)

  • Marcela Sabat� Sort

    (Department of Applied Economics. School of Economics. University of Zaragoza)

  • Estela S�enz Rodr�guez

    (Department of Applied Economics. School of Economics. University of Zaragoza)

Abstract

The 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.

Suggested Citation

  • M� Dolores Gadea Rivas & Marcela Sabat� Sort & Estela S�enz Rodr�guez, 2009. "The relationship between trade openness and public expenditure. The spanish case, 1960-2000," Documentos de Trabajo dt2009-06, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    • Handle: RePEc:zar:wpaper:dt2009-06
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    References listed on IDEAS

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    More about this item

    Keywords

    trade openness; public expenditure; cointegration;
    All these keywords.

    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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