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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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 |
work_keys_str_mv |
AT glendamaluleke thecausalrelationshipbetweentradeopennessandgovernmentsizeinsouthafrica AT glendamaluleke causalrelationshipbetweentradeopennessandgovernmentsizeinsouthafrica |
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1724700528835821568 |