Do More Open Economies Have Bigger Governments? Another Look

Garen, John; Trask, Kathleen

doi:10.2139/ssrn.286353

Cited by 12 publications

(12 citation statements)

References 18 publications

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“…One should acknowledge, however, that G/Y can be decomposed into several components. Garen and Trask (2005), for example, consider non-budgetary measures such as government ownership of enterprises, price controls, and asset expropriation. While each of these may have little impact on government expenditures, they can make the role of government sizable.…”

Section: The Theoretical Frameworkmentioning

confidence: 99%

Convergence Rates to Output Growth in a Global World: The Roles of Openness and Government Size

Cabral

Mollick²

2012

The International Trade Journal

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In this article, we examine the effects of three openness measures on 54 industrial and emerging economies' output growth over the "globalization years" of 1986-2004. Controlling for standard determinants of the Solow growth model in panel data, we find positive effects of openness on real output growth. While we find support for higher convergence rates under the open economy, the convergence rates in this article for both samples are remarkably close to the 2% level documented in Mankiw et al. (1992). The inclusion of G/Y, however, reduces the speed of convergence more substantially in industrial economies.

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Section: The Theoretical Frameworkmentioning

confidence: 99%

Convergence Rates to Output Growth in a Global World: The Roles of Openness and Government Size

Cabral

Mollick²

2012

The International Trade Journal

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“…They conclude that government size has not changed to moderate against greater external risk, or that causality does not run from trade openness to government size, or that openness leads to less volatility. Alesina and Wacziarg (1998) and Garen and Trask (2005) conclude that country size is the key and small countries are more open. They find only weak evidence in support of compensation hypothesis.…”

mentioning

confidence: 99%

Relationship Between Government Size and Trade Openness: Evidence from Pakistan

Zakaria

Shakoor

2011

Transit Stud Rev

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“…Thus, in this particular set of studies (that use either total spending or government consumption as a dependent variable), it may not be fortuitous that the compensation hypothesis is most supported when a control for capital openness is omitted (table 2). This happens (in all or some cases) in Swank (1988), Alesina and Wacziarg (1998), Islam (2004), Hays et al (2006), Rickard (2007), Garen and Trask (2005), Epifani and Garcia (2005), and Ram (2009). In our view, the fact that these studies do not include any measure of capital integration -and therefore leave unanswered the question of whether capital fl ows (or even stock) may have an impact on public policies -is crucial.…”

Section: Trade or Capital Openness?mentioning

confidence: 90%

“…On this side, there are indeed some regularities. Quinn (1997), Rodrik (1998), Garrett (2001), Garen and Trask (2005), Epifani and Garcia (2005), Bertola and Lo Prete (2008) and Ram (2009) are all cases where a strong positive relationship between government size and trade openness emerges. But they are also studies in which the number of countries is large, exceeding 50 or, in most cases, 100 countries.…”

Section: Country and Period Coveragementioning

confidence: 97%