Openness, Country Size and the Government [report]

Alberto Alesina, Romain Wacziarg
1997 unpublished
This paper shows that smaller countries have a larger share of public consumption in GDP, and are also more open to trade. These empirical observations are consistent with recent theoretical models explaining country formation and break up, and may account for the observed positive empirical relationship between trade openness and government size.
doi:10.3386/w6024 fatcat:3slgcdkzgndtbh73grnzji5xcy