Munich Personal RePEc Archive

Trade openness, capital openness and government size

Liberati, Paolo (2007): Trade openness, capital openness and government size. Published in: Journal of Public Policy , Vol. 2, No. 27 (2007): pp. 215-247.

This is the latest version of this item.

[thumbnail of MPRA_paper_44569.pdf]

Download (169kB) | Preview


This paper provides empirical evidence of the relation between trade openness, capital openness and government expenditures in a cross sectional time-series context. It is shown that capital openness is significantly and negatively related to government expenditures in line with the conventional wisdom that capital mobility may undermine the ability of governments to maintain larger public sectors. More importantly, the compensation hypothesis originally proposed by Rodrik (1998) and traceable back to Cameron (1978) is not in general supported by the data.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.