Does trade openness systematically imply bigger governments, as proposed by Rodrik (Journal of Political Economy, 106, 997 and 1998)? This paper presents a novel more refined explanation for when why international may enlarge the public sector. We propose that is associated with governments via compensation pathway if i $$ (i) price volatility country's export basket substantial ii (ii) country...

This paper analyzes the effects of trade openness on economic growth in a panel thirty developed and developing countries. The fixed model was estimated using PSTR technique data covering period 1980-2019. results show that relationship between is non-linear, external depend thresholds national income per capita. Below threshold 35 118 USD capita, has no significant effect growth. Above this th...

This paper examines the effects of trade openness on the optimal incentives firms provide to their managers (and hence firm-level productivity) in the new heterogeneous-firm trade framework. Export market selection and firm heterogeneity are shown to be the key determinants of firm owners’ optimal choices of the incentive contracts, which affect the cost-reduction efforts of their managers. I s...

Do openness to trade and higher levels of human capital growth promote faster growth? To answer that question we use a panel of countries to investigate the role of human capital and two measures of openness in determining both the level of income and its growth rate. We argue that focusing on the levels of income by estimating a production function will give misleading estimates if there are u...