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The Effect of Trade Openness and Income on the Size of a Government

Transylvanian Review of Administrative Sciences

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Title The Effect of Trade Openness and Income on the Size of a Government
 
Creator TURAN, Taner; Associate Professor, Department of Economics,
Faculty of Business Administration,
Gebze Technical University, Gebze/Kocaeli, Turkey
KARAKAS, Mesut; Assistant Professor, Department of Economics,
Faculty of Business Administration,
Gebze Technical University, Gebze/Kocaeli, Turkey
 
Subject government size, trade openness, bounds testing approach, ARDL, South Korea, Turkey.
 
Description This paper examines the effect of trade openness and per capita GDP on the size of government for Turkey and South Korea by means of ARDL approach to co-integration. We use different proxies to measure the size of government because not all measures of government size are appropriate to be employed in the estimates. Among the three (four) different measures of government size of Korea (Turkey), only one for each country has a co-integrating relationship with openness and per capita GDP. Long run coeffi cients suggest that per capita GDP has a positive and signifi cant effect on the government sizes for Turkey and Korea, implying the validity of the Wagner’s law. However, while openness has a negative effect on government size for Turkey, it has a positive effect for Korea. Our results clearly highlight the importance of choosing an appropriate proxy for government size to reach robust and consistent results.
 
Publisher Babes Bolyai University
 
Contributor —
 
Date 2016-02-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://rtsa.ro/tras/index.php/tras/article/view/478
 
Source Transylvanian Review of Administrative Sciences; 2016: Issue No. 47 E/February; 164-178
18422845
 
Language eng
 
Relation http://rtsa.ro/tras/index.php/tras/article/view/478/467
 
Rights Copyright (c) 2016 Transylvanian Review of Administrative Sciences