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Openness and Government Size in Sub-Saharan African countries

Author

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  • Stéphane Mbiankeu Nguea

    (University of Dschang, Cameroon)

Abstract

Using a panel dataset of 40 Sub-Saharan African (SSA) countries covering the period 1990-2015, through several panel data analysis, this study provide an empirical assessment of the relationship between openness and government size. To measure openness, trade openness, financial openness and globalization are used. Results of fixed effects model reveal that while trade openness confirms the evidence of the compensation hypothesis, financial openness and globalization are relevant to government size and confirm the efficiency hypothesis. The robustness of initial findings by the System Generalized Method of Moments (SGMM) estimations shows that trade openness has a significant positive effect on government size - supporting the compensation hypothesis-, while financial openness is negatively and significantly related to government size - supporting the efficiency hypothesis. In addition, globalization does not appear to have a significant effect on government size.

Suggested Citation

  • Stéphane Mbiankeu Nguea, 2020. "Openness and Government Size in Sub-Saharan African countries," Economics Bulletin, AccessEcon, vol. 40(4), pages 2669-2676.
    • Handle: RePEc:ebl:ecbull:eb-20-00561
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    Cited by:

    1. Maluleke Glenda, 2024. "Impact of Trade Openness on Government Expenditure in South Africa: an ARDL Approach," Folia Oeconomica Stetinensia, Sciendo, vol. 24(1), pages 144-162.
    2. Stéphane Mbiankeu Nguea & Armand Gilbert Noula & Issidor Noumba, 2024. "Financial Globalization and Democracy: Implications for Economic Growth in African Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 3355-3379, March.
    3. Noumba, Issidor & Nguea, Stéphane Mbiankeu, 2023. "Assessing the role of globalization for universal electricity access," International Economics, Elsevier, vol. 174(C), pages 180-195.
    4. Noumba, Issidor & Noula, Armand Gilbert & Nguea, Stéphane Mbiankeu, 2022. "Do globalization and resource rents matter for human well-being? Evidence from African countries," International Economics, Elsevier, vol. 170(C), pages 49-65.
    5. Fotio, Hervé Kaffo & Nguea, Stéphane Mbiankeu, 2022. "Access to water and sanitation in Africa: Does globalization matter?," International Economics, Elsevier, vol. 170(C), pages 79-91.

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    More about this item

    Keywords

    Openness; government size; compensation hypothesis; efficiency hypothesis;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • H1 - Public Economics - - Structure and Scope of Government

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