The Effect of Trade Openness and Income on the Size of a Government
<p>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...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Babes-Bolyai University, Cluj-Napoca
2016-02-01
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| Series: | Transylvanian Review of Administrative Sciences |
| Subjects: | |
| Online Access: | https://rtsa.ro/tras/index.php/tras/article/view/478 |
| _version_ | 1797262637100171264 |
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| author | Taner TURAN Mesut KARAKAS |
| author_facet | Taner TURAN Mesut KARAKAS |
| author_sort | Taner TURAN |
| collection | DOAJ |
| description | <p>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.</p> |
| first_indexed | 2024-03-11T11:47:13Z |
| format | Article |
| id | doaj.art-4b40d7c5025f43ea8dcd047588ec1048 |
| institution | Directory Open Access Journal |
| issn | 1842-2845 |
| language | English |
| last_indexed | 2024-04-25T00:00:16Z |
| publishDate | 2016-02-01 |
| publisher | Babes-Bolyai University, Cluj-Napoca |
| record_format | Article |
| series | Transylvanian Review of Administrative Sciences |
| spelling | doaj.art-4b40d7c5025f43ea8dcd047588ec10482024-03-14T07:28:36ZengBabes-Bolyai University, Cluj-NapocaTransylvanian Review of Administrative Sciences1842-28452016-02-011247164178494The Effect of Trade Openness and Income on the Size of a GovernmentTaner TURAN0Mesut KARAKAS1Associate Professor, Department of Economics, Faculty of Business Administration, Gebze Technical University, Gebze/Kocaeli, TurkeyAssistant Professor, Department of Economics, Faculty of Business Administration, Gebze Technical University, Gebze/Kocaeli, Turkey<p>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.</p>https://rtsa.ro/tras/index.php/tras/article/view/478government size, trade openness, bounds testing approach, ardl, south korea, turkey. |
| spellingShingle | Taner TURAN Mesut KARAKAS The Effect of Trade Openness and Income on the Size of a Government Transylvanian Review of Administrative Sciences government size, trade openness, bounds testing approach, ardl, south korea, turkey. |
| title | The Effect of Trade Openness and Income on the Size of a Government |
| title_full | The Effect of Trade Openness and Income on the Size of a Government |
| title_fullStr | The Effect of Trade Openness and Income on the Size of a Government |
| title_full_unstemmed | The Effect of Trade Openness and Income on the Size of a Government |
| title_short | The Effect of Trade Openness and Income on the Size of a Government |
| title_sort | effect of trade openness and income on the size of a government |
| topic | government size, trade openness, bounds testing approach, ardl, south korea, turkey. |
| url | https://rtsa.ro/tras/index.php/tras/article/view/478 |
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