August 19, 2019. Globalization reduces public employment. GLO Discussion Paper now published in “Economics Letters”

Does globalization increases or decreases the size of government (“compensation” versus “efficiency” hypothesis)? The debate is re-visited with innovative bureaucracy and globalization indicators using panel data for the unexplored period 2000-2016. Robust evidence suggests that global competition reduces public employment.

• Gözgör, Giray & Bilgin, Mehmet Huseyin & Zimmermann, Klaus F.
• GLO Fellows & GLO President
• Public Employment Decline in Developing Countries in the 21st Century: The Role of Globalization
• GLO Discussion Paper No. 326.
• Pre-publication Version. (With complete Online Appendix.)
• Published: Economics Letters, preliminary version available with Elsevier ONLINE
• Published version online, Economics Letters 184 (2019).

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