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  •   Repositorio Institucional Universidad EAFIT
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Trade openness and bigger governments: The role of country size revisited

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Date
2015-03
Author
Jetter, Michael
Parmeterb, Christopher F.
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Abstract
Abstract
This paper revisits the question of why more open countries tend to have bigger governments. We replicate successfully the main results of Ram (2009), who rejects the role of country size as an omitted variable. However, several extensions advise against a hasty conclusion: The results differ substantially depending on the data source used, the timeframe considered, the countries selected, and the way variables are measured. Specifically, we employ newer versions of the Penn World Table (PWT 7.1 and 8.0), allowing us to both extend the number of observations and the timeframe. We find evidence for the claim that smaller countries do indeed have bigger governments, especially when using the PWT 8.0 data, and Ram (2009) findings might be driven by the specific dataset used (PWT 6.1) and the countries included in that sample. Finally, we also conduct quantile regression analyses to pin down at which point of the distribution the suggested relationships come out.
URI
http://hdl.handle.net/10784/7508
Editor URL
European Journal of Political Economy. Vol.37, 2015, pp.49-63
http://www.sciencedirect.com.ezproxy.eafit.edu.co/science/article/pii/S0176268014001049
DOI
10.1016/j.ejpoleco.2014.11.001
Collections
  • Artículos (GEE) [107]
  • Artículos publicados [194]

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