Determinants of government size: evidence from China
This 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 Wagner’s law does not hold true for China. Moreover, both expenditure decentralization and revenue decentralization contribute to the expansion of China’s government.
(This abstract was borrowed from another version of this item.)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John P. Burns, 2007. "Civil Service Reform in China," OECD Journal on Budgeting, OECD Publishing, vol. 7(1), pages 1-25.
- Sinha, Dipendra, 2007. "Does the Wagner’s Law hold for Thailand? A Time Series Study," MPRA Paper 2560, University Library of Munich, Germany.
- Alesina, Alberto & Wacziarg, Romain, 1998.
"Openness, country size and government,"
Journal of Public Economics,
Elsevier, vol. 69(3), pages 305-321, September.
- Ehdaie, Jaber, 1994. "Fiscal decentralization and the size of the government : an extension with evidence from cross-country data," Policy Research Working Paper Series 1387, The World Bank.
- Dani Rodrik, 1996.
"Why Do More Open Economies Have Bigger Governments?,"
NBER Working Papers
5537, National Bureau of Economic Research, Inc.
- Dani Rodrik, 1998. "Why Do More Open Economies Have Bigger Governments?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 997-1032, October.
- Rodrik, Dani, 1996. "Why do More Open Economies Have Bigger Governments?," CEPR Discussion Papers 1388, C.E.P.R. Discussion Papers.
- Philip Grossman, 1989.
"Fiscal decentralization and government size: An extension,"
Springer, vol. 62(1), pages 63-69, July.
- Philip J. Grossman, 1989. "Fiscal Decentralization and Government Size: An Extension," Monash Economics Working Papers archive-05, Monash University, Department of Economics.
- P.J. Grossman, 1988. "Fiscal Decentralization and Government Size: An extension," Economics Discussion / Working Papers 88-16, The University of Western Australia, Department of Economics.
- Matthew A Cole & Robert J R Elliott & Jing Zhang, 2009.
"Corruption, Governance and FDI Location in China: A Province-Level Analysis,"
09-14, Department of Economics, University of Birmingham.
- Matthew Cole & Robert Elliott & Jing Zhang, 2009. "Corruption, Governance and FDI Location in China: A Province-Level Analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 45(9), pages 1494-1512.
- Matthew Cole & Robert Elliott & Jing Zhang, 2008. "Corruption, Governance and FDI Location in China : A Province-Level Analysis," Discussion Papers 08-06, Department of Economics, University of Birmingham.
- Jing Jin & Heng-fu Zou, 2000.
"How does fiscal decentralization affect aggregate, national, and subnational government size?,"
CEMA Working Papers
72, China Economics and Management Academy, Central University of Finance and Economics.
- Jin, Jing & Zou, Heng-fu, 2002. "How does fiscal decentralization affect aggregate, national, and subnational government size?," Journal of Urban Economics, Elsevier, vol. 52(2), pages 270-293, September.
- Emmanuel Ziramba, 2008. "Wagner'S Law: An Econometric Test For South Africa, 1960-2006," South African Journal of Economics, Economic Society of South Africa, vol. 76(4), pages 596-606, December.
- Tobin, Damian, 2005. "Economic Liberalization, the Changing Role of the State and "Wagner's Law": China's Development Experience since 1978," World Development, Elsevier, vol. 33(5), pages 729-743, May.
- Marlow, Michael L, 1991. "Privatization and Government Size," Public Choice, Springer, vol. 68(1-3), pages 273-76, January.
- Oates, Wallace E, 1985. "Searching for Leviathan: An Empirical Study," American Economic Review, American Economic Association, vol. 75(4), pages 748-57, September.
- Halicioglu Ferda, 2003. "Testing Wagner's Law for Turkey, 1960-2000," Review of Middle East Economics and Finance, De Gruyter, vol. 1(2), pages 31-42, August.
- Ferris, J. Stephen & Park, Soo-Bin & Winer, Stanley L., 2008.
"Studying the role of political competition in the evolution of government size over long horizons,"
POLIS Working Papers
111, Institute of Public Policy and Public Choice - POLIS.
- J. Ferris & Soo-Bin Park & Stanley Winer, 2008. "Studying the role of political competition in the evolution of government size over long horizons," Public Choice, Springer, vol. 137(1), pages 369-401, October.
- Ferris, J.S. & Park, S. & Winer, S.L., 2007. "Studying the Role of Political Competition in the Evolution of Government Size Over Long Horizons," Cambridge Working Papers in Economics 0774, Faculty of Economics, University of Cambridge.
- Gelb, A & Knight, John B & Sabot, R H, 1991. "Public Sector Employment, Rent Seeking and Economic Growth," Economic Journal, Royal Economic Society, vol. 101(408), pages 1186-99, September.
- Fock, Achim & Wong, Christine, 2008. "Financing rural development for a harmonious society in China : recent reforms in public finance and their prospects," Policy Research Working Paper Series 4693, The World Bank.
- De Witte, Kristof & Moesen, Wim, 2009.
"Sizing the Government,"
14785, University Library of Munich, Germany.
- Ernesto H. Stein & Jorge M. Streb, 1998.
"Fiscal Decentralization and Government Size in Latin America,"
IDB Publications (Working Papers)
6436, Inter-American Development Bank.
- Ernesto Stein, 1999. "Fiscal Decentralization and Government Size in Latin America," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 357-391, November.
- Ernesto H. Stein, 1998. "Fiscal Decentralization and Government Size in Latin America," Research Department Publications 4112, Inter-American Development Bank, Research Department.
- Chien-Hsun Chen, 2004. "Fiscal decentralization, collusion and government size in China's transitional economy," Applied Economics Letters, Taylor & Francis Journals, vol. 11(11), pages 699-705.
- Ram, Rati, 2009. "Openness, country size, and government size: Additional evidence from a large cross-country panel," Journal of Public Economics, Elsevier, vol. 93(1-2), pages 213-218, February.
- Mueller,Dennis C., 2003. "Public Choice III," Cambridge Books, Cambridge University Press, number 9780521894753, June.
- Jorge Martinez-Vazquez & Ming-Hung Yao, 2009. "Fiscal Decentralization and Public Sector Employment: A Cross-Country Analysis," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0903, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Alena Kimakova, 2009. "Government size and openness revisited: the case of financial globalization," Kyklos, Wiley Blackwell, vol. 62(3), pages 394-406, 08.
- Akitoby, Bernardin & Clements, Benedict & Gupta, Sanjeev & Inchauste, Gabriela, 2006. "Public spending, voracity, and Wagner's law in developing countries," European Journal of Political Economy, Elsevier, vol. 22(4), pages 908-924, December.
- Mala Lalvani, 2002. "Can Decentralization Limit Government Growth? A Test of the Leviathan Hypothesis for the Indian Federation," Publius: The Journal of Federalism, Oxford University Press, vol. 32(3), pages 25-46, Summer.
- Sunday Osaretin Iyare & Troy Lorde, 2004. "Co-integration, causality and Wagner's law: tests for selected Caribbean countries," Applied Economics Letters, Taylor & Francis Journals, vol. 11(13), pages 815-825.
When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:151:y:2012:i:1:p:255-270. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.