Government Size and Trade Openness: Some Additional Insights

Paolo Liberati

MPRA Paper from University Library of Munich, Germany

Abstract: This paper provides additional insights on the relationship between government size and trade openness using a panel of countries drawn from the World Development Indicators and the Penn World Tables 7.0 from 1962 to 2009. It is shown that the compensation hypothesis proposed by Rodrik (1998) and revisited by Alesina and Wacziarg (1998) and by Ram (2009) cannot be attributed general validity. Rather, it may be driven by specific geographical areas.

Keywords: Openness; Compensation hypothesis; Government Consumption; Trade (search for similar items in EconPapers)
JEL-codes: H11 H50 H77 (search for similar items in EconPapers)
Date: 2013-01-04
New Economics Papers: this item is included in nep-int and nep-pbe
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Citations: View citations in EconPapers (6)

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Journal Article: Government Size and Trade Openness: Some Additional Insights (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:43561

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