Government size, institutions, and export performance among OECD economies

Bournakis, Ioannis ORCID: and Tsoukis, Christopher (2016) Government size, institutions, and export performance among OECD economies. Economic Modelling, 53 . pp. 37-47. ISSN 0264-9993 (doi:10.1016/j.econmod.2015.11.011)

PDF - Final accepted version (with author's formatting)
Available under License Creative Commons Attribution-NonCommercial-NoDerivatives.

Download (714kB) | Preview


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
Additional Information: This paper presented in the 45th Annual Conference of the Money, Macro and Finance Research Group
Keywords (uncontrolled): Export shares, government size, institutions, unit labour cost, competitiveness
Research Areas: A. > Business School > Economics
Item ID: 19191
Notes on copyright: © 2015 Elsevier B.V. This author's accepted manuscript version is made available under the CC-BY-NC-ND 4.0 license
Useful Links:
Depositing User: Ioannis Bournakis
Date Deposited: 12 Apr 2016 13:05
Last Modified: 17 Feb 2020 12:27

Actions (login required)

Edit Item Edit Item

Full text downloads (NB count will be zero if no full text documents are attached to the record)

Downloads per month over the past year