Validity of globalization brings out the question of whether greater openness is a booster reason to have a bigger government. This issue has been started to be discussed in relevant literature since the late 1970s. In this context, the purpose of this study is to examine the linkage between trade openness and the size of the government in Turkey over the period 1974-2011. Using residual based co-integration approach, we fail to find an evidence of a long run relationship. In addition, we do not provide causal support of compensation hypothesis in Turkish economy.
Other ID | JA74ZA34MV |
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Journal Section | Research Article |
Authors | |
Publication Date | June 1, 2013 |
Published in Issue | Year 2013 Volume: 3 Issue: 2 |