THE IMPACT OF TRADE OPENNESS ON GOVERNMENT SIZE: THE CASE STUDY OF LOWER MIDDLE INCOME COUNTRY GROUP (2000-2006)

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TAGHINEZHAD OMRAN VAHID; SHAHROUZIFAR ZAHRA

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Journal: Iranian Journal of Trade Studies Year:2013 | Volume:17 | Issue:65 Page(s): 167-184

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Title

THE IMPACT OF TRADE OPENNESS ON GOVERNMENT SIZE: THE CASE STUDY OF LOWER MIDDLE INCOME COUNTRY GROUP (2000-2006)

Author(s)

TAGHINEZHAD OMRAN VAHID | SHAHROUZIFAR ZAHRA | Issue Writer Certificate

Keywords

TRADE OPENNESSQ2

COMPENSATION HYPOTHESISQ2

GOVERNMENT SIZEQ2

PANEL DATAQ2

Abstract

The COMPENSATION HYPOTHESIS, that is proposed by Rodrik (1998), predicts a positive relationship between TRADE OPENNESS and the size of the public sector, as governments perform a risk mitigating role in the face of internationally generated risk and economic dislocations. This research tests this hypothesis for a sample of 35 lower middle income countries, including Iran, from 2000-2006. Our findings based on PANEL DATA regression model indicate TRADE OPENNESS positively and significantly influences GOVERNMENT SIZE; then in reducing process of GOVERNMENT SIZE, policy makers should consider compensation role of government.

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APA: Copy

TAGHINEZHAD OMRAN, VAHID, & SHAHROUZIFAR, ZAHRA. (2013). THE IMPACT OF TRADE OPENNESS ON GOVERNMENT SIZE: THE CASE STUDY OF LOWER MIDDLE INCOME COUNTRY GROUP (2000-2006). IRANIAN JOURNAL OF TRADE STUDIES (IJTS), 17(65), 167-184. SID. https://sid.ir/paper/7320/en

Vancouver: Copy

TAGHINEZHAD OMRAN VAHID, SHAHROUZIFAR ZAHRA. THE IMPACT OF TRADE OPENNESS ON GOVERNMENT SIZE: THE CASE STUDY OF LOWER MIDDLE INCOME COUNTRY GROUP (2000-2006). IRANIAN JOURNAL OF TRADE STUDIES (IJTS)[Internet]. 2013;17(65):167-184. Available from: https://sid.ir/paper/7320/en

IEEE: Copy

VAHID TAGHINEZHAD OMRAN, and ZAHRA SHAHROUZIFAR, “THE IMPACT OF TRADE OPENNESS ON GOVERNMENT SIZE: THE CASE STUDY OF LOWER MIDDLE INCOME COUNTRY GROUP (2000-2006),” IRANIAN JOURNAL OF TRADE STUDIES (IJTS), vol. 17, no. 65, pp. 167–184, 2013, [Online]. Available: https://sid.ir/paper/7320/en

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