Do more open economies have bigger governments? Another look

@inproceedings{Garen2001DoMO,
  title={Do more open economies have bigger governments? Another look},
  author={John E. Garen and Kathleen Trask},
  year={2001}
}
In the Journal of Political Economy, Rodrik (1998) finds a positive association between the openness of an economy and its government size. He explains this paradox by arguing that government expenditures are used to provide social insurance against the risk of terms of trade shocks that open economies face. This paper examines the relationship of other measures of the size of government to openness of an economy and to risk of terms of trade shocks. We present evidence that less open economies… CONTINUE READING

Citations

Publications citing this paper.
SHOWING 1-10 OF 27 CITATIONS

THE DETERMINANTS OF THE SIZE OF GOVERNMENT IN DEVELOPED MARKET ECONOMIES

VIEW 6 EXCERPTS
CITES BACKGROUND
HIGHLY INFLUENCED

Globalization and the public sector

VIEW 3 EXCERPTS
CITES BACKGROUND & RESULTS
HIGHLY INFLUENCED