검색 상세

무역의존도와 정부의 크기

Trade Openness and Government Size

초록/요약

Rodrik(1998) found a positive correlation between an economy's exposure to international trade and the size of the government. One explanation is that government spending plays a risk-reducing role in economies exposed to a significant amount of external risk. However, I find that this correlation is not robust when we control the effects of other variables in the new data set including observations in 1990s. The correlations are fragile both in OLS and fixed-effects regressions. Firstly, in the recent data set, correlations between trade openness and government size are distinctively weak because after 1990’s many developing countries increased their trade openness without significantly increasing their government size. Secondly, controlling the effect of country size breaks positive correlation between openness and government expenditure. There seems to be strong economies of scale in government spending.

more