The long run relationship between openness and government size: evidence from bounds test

$53.17 plus tax (Refund Policy)

Buy Article:

Abstract:

The bounds test is applied to determine the existence of a level relationship between government size, openness, terms of trade volatility, and external risk using time series data from Australia, Canada, England, Norway, Sweden, and the USA. Bounds test results show that the existence of a long run relationship in the USA and Canada, but not in any of the other countries. Long run parameters are estimated using both autoregressive distributed lag and FM-OLS procedures. Results vary from country to country, with some evidence that government size is significantly affected by openness and terms of trade volatility. However, contrary to argument and evidence developed using cross-section data, empirical evidence presented in this paper show that the size of the government has not changed to mitigate the effect of increased income risks associated with greater openness.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/0003684042000233221

Affiliations: Department of Economics Saint Louis University 3674 Lindell Blvd. St. Louis MO 63108 USA, Email: islampq@slu.edu

Publication date: May 1, 2004

More about this publication?
Related content

Share Content

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more