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Trade openness and government size

Michael Benarroch and Manish Pandey

Economics Letters, 2008, vol. 101, issue 3, 157-159

Abstract: 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.

Keywords: Government; size; Trade; openness; Causality (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (44)

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