Determinants of government size: evidence from China
AbstractThis paper investigates the determinants of government size at the provincial level in China. We employ the panel data model as a platform for empirical analysis and control for endogeneity in the study. Our study shows that openness to trade and foreign direct investment (FDI) may curtail government expansion, and that the provincial-level public sector is characterized by economies of scale. This study also documents that Wagnerâs law does not hold true for China. Moreover, both expenditure decentralization and revenue decentralization contribute to the expansion of Chinaâs government.
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Bibliographic InfoArticle provided by Springer in its journal Public Choice.
Volume (Year): 151 (2012)
Issue (Month): 1 (April)
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Web page: http://www.springerlink.com/link.asp?id=100332
Government size; Wagner’s law; Scale effects; Openness to trade; Fiscal decentralization; H11; H61;
Other versions of this item:
- Wu, Alfred M. & Lin, Mi, 2010. "Determinants of government size: Evidence from China," MPRA Paper 27089, University Library of Munich, Germany.
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
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