Skip to main content

Research Repository

Advanced Search

Government size, institutions and export performance among OECD economies

Tsoukis

Government size, institutions and export performance among OECD economies Thumbnail


Authors



Abstract

With a panel of 18 OECD countries, 1980–2005, we investigate the determinants of export performance, in particular the effects of the size of government and institutional features. In a model of endogenous extent of domestically-produced goods, government size has a non-linear effect on export performance; the export-maximising size of government (tax receipts) is around 40–45% of GDP; the best size of productive government spending is around 16% of GDP. Product market and labour market-related rigidities affect negatively the export performance both on their own and via a negative effect on the effectiveness of R&D and slow down the speed of adjustment. Among traditional variables, relative unit labour cost, R&D shares in GDP, TFP growth and human capital show up significantly and with the expected signs.

Acceptance Date Nov 12, 2015
Publication Date Dec 4, 2015
Publicly Available Date Mar 28, 2024
Journal Economic Modelling
Print ISSN 0264-9993
Publisher Elsevier
Pages 37-47
DOI https://doi.org/10.1016/j.econmod.2015.11.011
Keywords Export shares; Government size; Institutions; Unit labour cost; Competitiveness
Publisher URL https://doi.org/10.1016/j.econmod.2015.11.011

Files





You might also like



Downloadable Citations