The Impact of Trade Openness on Government Size in Developing Countries

The main objective of this study is to investigate impacts of trade openness on government size in developing countries by using an array of indicators over the period of 1970-2011. The main results of this study indicate that degree of trade openness has positive and significant effect on government size in developing countries. Moreover we find that trade openness exert statistically significant positive effects on government size over period of 1980-2011 and in developing countries with high human development index.