Public employment decline in developing countries in the 21st century: The role of globalization

Abstract

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. (C) 2019 Elsevier B.V. All rights reserved.