The Causal Relationship between Trade Openness and Government Size in South Africa

This study empirically examines the causality between government size and trade openness including economic growth as an intermittent variable from 1980 to 2018 in South Africa. The study employed the Johansen-Juselius cointegration and Granger causality test. The results revealed that there is a...

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Main Author: Glenda Maluleke
Format: Article
Language:English
Published: Danubius University 2020-04-01
Series:Acta Universitatis Danubius: Oeconomica
Subjects:
Online Access:http://dj.univ-danubius.ro/index.php/AUDOE/article/view/209/419
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spelling doaj-46900af0ecca4e9d85e9ac8afe7764be2020-11-25T02:59:53ZengDanubius UniversityActa Universitatis Danubius: Oeconomica2065-01752067-340X2020-04-011626070The Causal Relationship between Trade Openness and Government Size in South AfricaGlenda Maluleke0University of South AfricaThis study empirically examines the causality between government size and trade openness including economic growth as an intermittent variable from 1980 to 2018 in South Africa. The study employed the Johansen-Juselius cointegration and Granger causality test. The results revealed that there is a long-run relationship between government size and trade openness. The Granger causality test revealed that there is a unidirectional causality from trade openness to government size. Therefore, the study does find support for a compensation hypothesis in South Africa.http://dj.univ-danubius.ro/index.php/AUDOE/article/view/209/419government size; trade openness; economic growth; granger causality
collection DOAJ
language English
format Article
sources DOAJ
author Glenda Maluleke
spellingShingle Glenda Maluleke
The Causal Relationship between Trade Openness and Government Size in South Africa
Acta Universitatis Danubius: Oeconomica
government size; trade openness; economic growth; granger causality
author_facet Glenda Maluleke
author_sort Glenda Maluleke
title The Causal Relationship between Trade Openness and Government Size in South Africa
title_short The Causal Relationship between Trade Openness and Government Size in South Africa
title_full The Causal Relationship between Trade Openness and Government Size in South Africa
title_fullStr The Causal Relationship between Trade Openness and Government Size in South Africa
title_full_unstemmed The Causal Relationship between Trade Openness and Government Size in South Africa
title_sort causal relationship between trade openness and government size in south africa
publisher Danubius University
series Acta Universitatis Danubius: Oeconomica
issn 2065-0175
2067-340X
publishDate 2020-04-01
description This study empirically examines the causality between government size and trade openness including economic growth as an intermittent variable from 1980 to 2018 in South Africa. The study employed the Johansen-Juselius cointegration and Granger causality test. The results revealed that there is a long-run relationship between government size and trade openness. The Granger causality test revealed that there is a unidirectional causality from trade openness to government size. Therefore, the study does find support for a compensation hypothesis in South Africa.
topic government size; trade openness; economic growth; granger causality
url http://dj.univ-danubius.ro/index.php/AUDOE/article/view/209/419
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