Author/Authors :
Zeren, Fatma İnönü Üniversitesi - İ İ B F Ekonometri Bölümü, Turkey , Ergün, Suzan İnönü Üniversitesi - İ İ B F İktisat Bölümü, Turkey
Title Of Article :
TRADE OPENNESS AND GOVERNMENT SIZE RELATIONSHIP: PANEL CAUSALITY TEST
Abstract :
The compensation hypothesis which focuses on the effects of globalization has been studied in the literatüre. The purpose of this paper is to test whether there is an evidence of compensation hypothesis in Euro countries. Therefore we examines the causal relationship between trade openness and government size in a panel of 15 selected Euro countries from 1971 to 2011. We used panel causality test which is based on Meta analysis in heterogeneous mixed panels. Empirical results indicate one-way causality from trade openness to government size for 15 Euro countries. That is, compensation hypothesis is valid.
NaturalLanguageKeyword :
Government Size , Trade Openness , Compensation Hypothesis , Euro Countries , Panel Causality Test
JournalTitle :
Journal Of Economics and Administrative Sciences, Ataturk University
