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

María Gadea (), Marcela Sabate () and Estela Sáenz Rodríguez ()
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Estela Sáenz Rodríguez: Department of Applied Economics. School of Economics. University of Zaragoza

Documentos de Trabajo from Facultad de Ciencias Económicas y Empresariales, Universidad de 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.

Keywords: trade openness; public expenditure; cointegration (search for similar items in EconPapers)
JEL-codes: F41 H11 (search for similar items in EconPapers)
Date: 2009-06
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Persistent link: https://EconPapers.repec.org/RePEc:zar:wpaper:dt2009-06

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