Government size, government debt and globalization

Dong-Hyeon Kim, Yu Bo Suen, Shu Chin Lin, Joyce Hsieh

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

This article empirically investigates the effect of globalization on government size and debt. Using panel heterogeneous cointegration techniques to a panel of developing and developed countries, it finds that globalization reduces government size and debt. In terms of components of globalization, government size is found to increase with trade openness but decreases with financial, social and political globalization. On the other hand, government debt increases with financial and trade openness but decreases with social and political globalization. The evidence is robust to different estimation methods and different samples. Our data also indicate unidirectional causality running from globalization measures to government size and debt.

Original languageEnglish
Pages (from-to)1-12
Number of pages12
JournalApplied Economics
DOIs
Publication statusAccepted/In press - 2017 Dec 4

Fingerprint

Government size
Government debt
Globalization
Trade openness
Developing countries
Heterogeneous panels
Causality
Developed countries
Cointegration
Financial openness

Keywords

  • globalization
  • government debt
  • Government size
  • heterogeneous panels

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Government size, government debt and globalization. / Kim, Dong-Hyeon; Suen, Yu Bo; Lin, Shu Chin; Hsieh, Joyce.

In: Applied Economics, 04.12.2017, p. 1-12.

Research output: Contribution to journalArticle

Kim, Dong-Hyeon ; Suen, Yu Bo ; Lin, Shu Chin ; Hsieh, Joyce. / Government size, government debt and globalization. In: Applied Economics. 2017 ; pp. 1-12.
@article{6a13fe3bc5d44b459b7b29b2218a0c27,
title = "Government size, government debt and globalization",
abstract = "This article empirically investigates the effect of globalization on government size and debt. Using panel heterogeneous cointegration techniques to a panel of developing and developed countries, it finds that globalization reduces government size and debt. In terms of components of globalization, government size is found to increase with trade openness but decreases with financial, social and political globalization. On the other hand, government debt increases with financial and trade openness but decreases with social and political globalization. The evidence is robust to different estimation methods and different samples. Our data also indicate unidirectional causality running from globalization measures to government size and debt.",
keywords = "globalization, government debt, Government size, heterogeneous panels",
author = "Dong-Hyeon Kim and Suen, {Yu Bo} and Lin, {Shu Chin} and Joyce Hsieh",
year = "2017",
month = "12",
day = "4",
doi = "10.1080/00036846.2017.1409418",
language = "English",
pages = "1--12",
journal = "Applied Economics",
issn = "0003-6846",
publisher = "Routledge",

}

TY - JOUR

T1 - Government size, government debt and globalization

AU - Kim, Dong-Hyeon

AU - Suen, Yu Bo

AU - Lin, Shu Chin

AU - Hsieh, Joyce

PY - 2017/12/4

Y1 - 2017/12/4

N2 - This article empirically investigates the effect of globalization on government size and debt. Using panel heterogeneous cointegration techniques to a panel of developing and developed countries, it finds that globalization reduces government size and debt. In terms of components of globalization, government size is found to increase with trade openness but decreases with financial, social and political globalization. On the other hand, government debt increases with financial and trade openness but decreases with social and political globalization. The evidence is robust to different estimation methods and different samples. Our data also indicate unidirectional causality running from globalization measures to government size and debt.

AB - This article empirically investigates the effect of globalization on government size and debt. Using panel heterogeneous cointegration techniques to a panel of developing and developed countries, it finds that globalization reduces government size and debt. In terms of components of globalization, government size is found to increase with trade openness but decreases with financial, social and political globalization. On the other hand, government debt increases with financial and trade openness but decreases with social and political globalization. The evidence is robust to different estimation methods and different samples. Our data also indicate unidirectional causality running from globalization measures to government size and debt.

KW - globalization

KW - government debt

KW - Government size

KW - heterogeneous panels

UR - http://www.scopus.com/inward/record.url?scp=85036652803&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85036652803&partnerID=8YFLogxK

U2 - 10.1080/00036846.2017.1409418

DO - 10.1080/00036846.2017.1409418

M3 - Article

AN - SCOPUS:85036652803

SP - 1

EP - 12

JO - Applied Economics

JF - Applied Economics

SN - 0003-6846

ER -