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Openness and Government Size: Additional Evidence from Multicountry Data

Rati Ram

Public Finance = Finances publiques, 1999, vol. 54, issue 1-2, 21-36

Abstract: Empirical status of the basics of Rodrik's (1998) influential proposition about the positive association between a country's external openness and the size of its government is explored from a large multicountry dataset covering the period 1960-2000. In individual-country data for 143 economies, two correlations sets and two sets of regression estimates show almost as many cases of positive signs as of negative numbers, and the mean value in each set is almost zero or very small. Estimates of parsimonious regression models from cross-section data also indicate a somewhat mixed position regarding covariation between openness and government size.

Date: 1999
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Handle: RePEc:pfi:pubfin:v:54:y:1999:i:1-2:p:21-36