Impact of Trade and Capital Openness on the Government Size of Russia

Relevance: With Russia's economy and trade growing significantly since 2014, there is a need to examine the impact of economic openness on government expenditure, given country's fiscal reforms. Research Objective: This study aims measure expenditure (government size) by categorizing it into capital openness. The Auto Regressive Distributed Lag (ARDL) model used long-run short-run size. Data Methods: Annual time series data from World Bank Open Development Indicators (WDI) 1997 2021 used. examines relationship between openness, Results: findings show that higher leads significant increase in size, while more results reduction size government. also highlights current account deficits national income with liberal policies leading widening deficit. positive correlation supports Wagner's Law "Increasing State Activity." Conclusion: suggests policymakers should adopt careful approach encourage as an overly liberalized could harm macroeconomic factors such balances. underscores challenges nations like Russia face when entering global markets for goods beyond oil exports.