Openness, Country Size and the Government
This paper shows that smaller countries have larger public sectors as a share of GDP, and are also more open to trade. These empirical observations are consistent with recent theoretical models explaining country formation and break up.
Published: Alesina, Alberto and Romain Wacziarg. "Openness, Country Size And Government," Journal of Public Economics, 1998, v69(3,Sep), 305-321.