Dani Rodrik's paper, "Why Do More Open Economies Have Bigger Governments?" explores the relationship between an economy's exposure to international trade and the size of its government. The study finds a robust correlation between openness to trade and the scope of government, measured by government spending as a share of GDP. This relationship holds across various datasets and measures of government size, and is significant even when controlling for other factors such as income, population, and urbanization. The paper suggests that this correlation is driven by the role of government spending in providing social insurance against external risks, such as fluctuations in the terms of trade and product concentration of exports. The analysis uses regression models to test these hypotheses, showing that the relationship between openness and government spending is strongest in economies with higher exposure to external risks. The findings are consistent with the idea that governments expand their role to mitigate the risks associated with external shocks, particularly in developing countries where administrative capacity for social welfare systems is limited. The paper also examines the impact of external risk on income volatility, finding that more open economies experience greater income volatility. This supports the hypothesis that greater exposure to external risks increases total risk for residents of these economies. Overall, the study provides evidence that the size of government is a function of the economic environment, with governments expanding their role to manage external risks.Dani Rodrik's paper, "Why Do More Open Economies Have Bigger Governments?" explores the relationship between an economy's exposure to international trade and the size of its government. The study finds a robust correlation between openness to trade and the scope of government, measured by government spending as a share of GDP. This relationship holds across various datasets and measures of government size, and is significant even when controlling for other factors such as income, population, and urbanization. The paper suggests that this correlation is driven by the role of government spending in providing social insurance against external risks, such as fluctuations in the terms of trade and product concentration of exports. The analysis uses regression models to test these hypotheses, showing that the relationship between openness and government spending is strongest in economies with higher exposure to external risks. The findings are consistent with the idea that governments expand their role to mitigate the risks associated with external shocks, particularly in developing countries where administrative capacity for social welfare systems is limited. The paper also examines the impact of external risk on income volatility, finding that more open economies experience greater income volatility. This supports the hypothesis that greater exposure to external risks increases total risk for residents of these economies. Overall, the study provides evidence that the size of government is a function of the economic environment, with governments expanding their role to manage external risks.