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Is high government effectiveness reduces imports?

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High government effectiveness does not directly reduce imports but rather influences various aspects of a country's economic behavior. Studies suggest that countries with above-average government effectiveness tend to increase their activities towards international integration through trade and financial openness . Additionally, effective governments are linked to reduced sovereign credit risk, which can impact import decisions . Furthermore, government effectiveness positively affects innovation output, which can indirectly influence import levels by fostering a more competitive and innovative domestic market . Therefore, while high government effectiveness may not directly reduce imports, it plays a crucial role in shaping a country's economic environment, which can have implications on import decisions.

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Open access•Posted Content The Import Leakage Effect and the Effectiveness of Fiscal Policy: An Input-Output Analysis Abdollah S Soofi, Kumars Parvin - Show less +1 more 01 Jan 1986 1 Citations	High government effectiveness may not necessarily reduce imports significantly, as shown in the study where increased government spending had limited impact due to import leakages, amounting to 20% of the spending increase.
Open access•Journal Article•DOI Is higher government efficiency bringing about higher innovation Jun Wen, Peidong Deng, Qianxiao Zhang, Chun-Ping Chang - Show less +3 more 22 Feb 2021-Technological and Economic Development of Economy 33 Citations	Not addressed in the paper.
Journal Article•DOI Sovereign Credit Risk and Government Effectiveness Jean-Claude Cosset, Alexandre Jeanneret - Show less +1 more 14 Sep 2015-Social Science Research Network 8 Citations	Not addressed in the paper.
Journal Article•DOI Government Effectiveness, the Global Financial Crisis, and Multinational Enterprise Internationalization Christopher Williams, Candace A. Martinez - Show less +1 more 01 Sep 2012-Journal of International Marketing 35 Citations	High government effectiveness increases majority control in multinational enterprises during global financial crises, but the paper does not address its direct impact on reducing imports.
Open access•Journal Article•DOI The Impact of Government Effectiveness on Trade and Financial Openness: The Generalized Quantile Panel Regression Approach Lethiwe Lourine Nzama, Thanda Sithole, Sezer Bozkus Kahyaoglu - Show less +2 more 27 Dec 2022-Journal of risk and financial management 2 Citations	Not addressed in the paper.

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