Government size, institutions, and export performance among OECD economies

Article

Bournakis, I. and Tsoukis, C. 2016. Government size, institutions, and export performance among OECD economies. Economic Modelling. 53, pp. 37-47. https://doi.org/10.1016/j.econmod.2015.11.011
TypeArticle
TitleGovernment size, institutions, and export performance among OECD economies
AuthorsBournakis, I. and Tsoukis, C.
Abstract

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.

KeywordsExport shares, government size, institutions, unit labour cost, competitiveness
PublisherElsevier
JournalEconomic Modelling
ISSN0264-9993
Electronic1873-6122
Publication dates
Online04 Dec 2015
Print01 Feb 2016
Publication process dates
Deposited12 Apr 2016
Accepted14 Nov 2015
Output statusPublished
Accepted author manuscript
License
Copyright Statement

© 2015 Elsevier B.V. This author's accepted manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/

Additional information

This paper presented in the 45th Annual Conference of the Money, Macro and Finance Research Group

Digital Object Identifier (DOI)https://doi.org/10.1016/j.econmod.2015.11.011
LanguageEnglish
Permalink -

https://repository.mdx.ac.uk/item/86369

Log in to edit

Download files

Accepted author manuscript
ECMODE-D-15-00307-RESUBM-Main.docx
ECMODE-D-15-00307-RESUBM-Main.pdf
License: CC BY-NC-ND 4.0

  • 32
    total views
  • 13
    total downloads
  • 1
    views this month
  • 0
    downloads this month

Export as

Related outputs

Spillovers and productivity: revisiting the puzzle with EU firm-level data
Bournakis, I. 2021. Spillovers and productivity: revisiting the puzzle with EU firm-level data. Economics Letters. 201. https://doi.org/10.1016/j.econlet.2021.109804
Innovation and external knowledge sources in knowledge intensive business services (KIBS): evidence from de-industrialized UK regions
Savic, M., Lawton Smith, H. and Bournakis, I. 2020. Innovation and external knowledge sources in knowledge intensive business services (KIBS): evidence from de-industrialized UK regions. Entrepreneurship and Regional Development. 32 (9-10), pp. 805-826. https://doi.org/10.1080/08985626.2020.1789751
Total factor productivity (TFP) and fiscal consolidation: How harmful is austerity?
Bardaka, I., Bournakis, I. and Kaplanoglou, G. 2021. Total factor productivity (TFP) and fiscal consolidation: How harmful is austerity? Economic Modelling. 94, pp. 908-922. https://doi.org/10.1016/j.econmod.2020.02.032
Do corporate taxes harm economic performance? Explaining distortions in R&D- and export-intensive UK firms
Bournakis, I. and Mallick, S. 2018. Do corporate taxes harm economic performance? Explaining distortions in R&D- and export-intensive UK firms. Macroeconomic Dynamics. https://doi.org/10.1017/S136510051800055X
Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China
Zhang, S., Zhao, S., Bournakis, I., Pearce, R. and Papanastassiou, M. 2018. Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China. Economia Politica. 35 (2), pp. 623-648. https://doi.org/10.1007/s40888-018-0120-8
The impact of multinational and domestic enterprises on regional productivity: the evidence from the UK
Bournakis, I., Papanastassiou, M. and Pitelis, C. 2019. The impact of multinational and domestic enterprises on regional productivity: the evidence from the UK. Regional Studies. 53 (2), pp. 159-170. https://doi.org/10.1080/00343404.2018.1447661
Greece’s competitiveness: A survey and concluding remarks
Bournakis, I. and Tsoukis, C. 2017. Greece’s competitiveness: A survey and concluding remarks. in: Bournakis, I., Tsoukis, C., Christopoulos, D. and Palivos, T. (ed.) Political Economy Perspectives of the Greek Crisis: Debt, Austerity and Unemployment Palgrave Macmillan. pp. 359-382
Output and unemployment: Estimating Okun’s Law for Greece
Bournakis, I. and Christopoulos, D. 2017. Output and unemployment: Estimating Okun’s Law for Greece. in: Bournakis, I., Tsoukis, C., Christopoulos, D. and Palivos, T. (ed.) Political Economy Perspectives of the Greek Crisis: Debt, Austerity and Unemployment Palgrave Macmillan. pp. 273-287
Introduction
Tsoukis, C., Bournakis, I., Christopoulos, D. and Palivos, T. 2017. Introduction. in: Bournakis, I., Tsoukis, C., Christopoulos, D. and Palivos, T. (ed.) Political Economy Perspectives of the Greek Crisis: Debt, Austerity and Unemployment Palgrave Macmillan. pp. 3-40
TFP estimation at firm level: The fiscal aspect of productivity convergence in the UK
Bournakis, I. and Sushanta, M. 2018. TFP estimation at firm level: The fiscal aspect of productivity convergence in the UK. Economic Modelling. 70, pp. 579-590. https://doi.org/10.1016/j.econmod.2017.11.021
Knowledge spillovers and output per worker: an industry-level analysis for OECD countries
Bournakis, I., Christopoulos, D. and Mallick, S. 2018. Knowledge spillovers and output per worker: an industry-level analysis for OECD countries. Economic Inquiry. 56 (2), pp. 1028-1046. https://doi.org/10.1111/ecin.12458
Off-shoring, specialization and R&D
Bournakis, I., Vecchi, M. and Venturini, F. 2018. Off-shoring, specialization and R&D. Review of Income and Wealth. 64 (1), pp. 26-51. https://doi.org/10.1111/roiw.12239
The effect of external knowledge sources and their geography on innovation in Knowledge Intensive Business Services (KIBS) SMEs; some Implications for de-industrialized regions in the UK
Savic, M., Lawton-Smith, H. and Bournakis, I. 2014. The effect of external knowledge sources and their geography on innovation in Knowledge Intensive Business Services (KIBS) SMEs; some Implications for de-industrialized regions in the UK. London, UK CIMR: Centre for Innovation Management Research, Birkbeck University of London.
Knowledge spillovers, absorptive capacity and growth: an industry-level analysis for OECD countries
Bournakis, I., Christopoulos, D. and Mallick, S. 2015. Knowledge spillovers, absorptive capacity and growth: an industry-level analysis for OECD countries. Vienna Research Centre International Economics (FIW).
Costs, knowledge and market structure: understanding the puzzle of international competitiveness with Greek export data
Bournakis, I. 2014. Costs, knowledge and market structure: understanding the puzzle of international competitiveness with Greek export data. International Review of Applied Economics. 28 (2), pp. 240-269. https://doi.org/10.1080/02692171.2013.858669
Measuring firm-level productivity convergence in the UK: the role of taxation and R&D investment
Bournakis, I., Sushanta, M., Kernohan, D. and Tsouknidis, D. 2013. Measuring firm-level productivity convergence in the UK: the role of taxation and R&D investment. London Queen Mary University of London.
Government size, institutions, and export performance among OECD economies
Bournakis, I., Tsoukis, C., Middlesex University and London Metropolitan University 2013. Government size, institutions, and export performance among OECD economies. Middlesex University.
The determinants of exports in the Greek manufacturing sector
Bournakis, I. 2012. The determinants of exports in the Greek manufacturing sector. Global Business & Economics Review. 14 (4), pp. 362-380. https://doi.org/10.1504/GBER.2012.049871
Offshoring and specialisation: are industries moving?
Bournakis, I., Vecchi, M. and Venturini, F. 2011. Offshoring and specialisation: are industries moving? Royal Economic Society.
Tangible and intangible capital and the pattern of specialization in the EU
Bournakis, I. and Vecchi, M. 2010. Tangible and intangible capital and the pattern of specialization in the EU. Review of Economics and Institutions. 1 (2). https://doi.org/10.5202/rei.v1i2.3
Sources of TFP growth in a framework of convergence-evidence from Greece
Bournakis, I. 2012. Sources of TFP growth in a framework of convergence-evidence from Greece. International Review of Applied Economics. 26 (1), pp. 47-72. https://doi.org/10.1080/02692171.2011.557056
Does Greece learn from Germany, technological catch-up and the channels of productivity growth in the Greek manufacturing sector.
Bournakis, I. 2009. Does Greece learn from Germany, technological catch-up and the channels of productivity growth in the Greek manufacturing sector. Journal of World Economic Review. 4 (2), pp. 105-124.
Competitiveness productivity and trade: with special reference to Greece.
Bournakis, I. 2009. Competitiveness productivity and trade: with special reference to Greece. Saarbrücken VDM Verlag.