Investigation of the Relation between Economic Globalization and Government Size in Asian Developing Countries

The purpose of this paper is to examine the relation between government size and openness for a 26-years panel of 30 Asian developing countries. It is argued that there is a negative relation between country size and government size and also between country size and openness. Considering that, some researchers concluded that there is a positive relationship between openness and the size of government. To reveal the relation between these two variables, we used two proxies for measuring the extent of openness. The proxy used for openness is the economic dimension of KOF index of globalization. Employing a non-stationary panel data technique and DOLS estimator, the results show that there is a positive relationship between economic globalization and government size.