Testing the Rodrik Hypothesis in Turkiye

Abstract

In this study, the effect of globalization on government size is investigated for the period 1970-2019 in Turkiye. In the study, four different globalization indexes, namely general, social, political and economic, are used to represent the globalization variable. Four different models are created for each globalization index and Fractional Frequency Fourier ADF Test, RALS-ADL and RALS-EG2 cointegration tests are used as analysis methods. Model estimations are made with FOLS and DOLS methods. As a result of the analysis, the effect of economic globalization on government size is positive in all models. In other words, it is concluded that the compensation hypothesis is valid for Turkiye.

Keywords

• Globalization
• Government Size
• Compensation Hypothesis
• Efficiency Hypothesis
• Turkiye

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