Tsoukis, C (2016) The welfare state, institutions and export performance. Economic Modelling, 53. 37 - 47. ISSN 0264-9993

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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.

Item Type: Article
Uncontrolled Keywords: Export shares; Government size; Institutions; Unit labour cost; Competitiveness
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Humanities and Social Sciences > Keele Management School
Depositing User: Symplectic
Date Deposited: 15 Jun 2017 08:19
Last Modified: 16 Apr 2019 11:52
URI: https://eprints.keele.ac.uk/id/eprint/3623

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