International records / OpenAlex research

Openness and government size: The compensation and efficiency hypotheses considered for Nigeria

This paper investigates the relationship among financial openness, trade openness and government size in Nigeria.The study employed the autoregressive distributed lag (ARDL) approach to cointegration to investigate the relationship among the variables.Empirical estimates revealed that financial openness is significantly and negatively related to government size in line with the conventional wisdom that capital mobility may undermine the ability of governments to tax and raise revenue to finance government expenditure which is termed as the efficiency hypothesis.In addition, a positive relation…