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.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- 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.
- 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.
- 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.
- Rodrik, Dani, 1996.
"Why do More Open Economies Have Bigger Governments?,"
CEPR Discussion Papers
1388, C.E.P.R. Discussion Papers.
- 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.
- Dani Rodrik, 1996. "Why Do More Open Economies Have Bigger Governments?," NBER Working Papers 5537, National Bureau of Economic Research, Inc.
- Philip J. Grossman, 1989.
"Fiscal Decentralization and Government Size: An Extension,"
Monash Economics Working Papers
archive-05, Monash University, Department of Economics.
- Philip Grossman, 1989. "Fiscal decentralization and government size: An extension," Public Choice, Springer, vol. 62(1), pages 63-69, July.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Brennan,Geoffrey & Buchanan,James M., 2006.
"The Power to Tax,"
Cambridge University Press, number 9780521027922.
- Alesina, Alberto & Wacziarg, Romain, 1998.
"Openness, country size and government,"
Journal of Public Economics,
Elsevier, vol. 69(3), pages 305-321, September.
- Kristof Witte & Wim Moesen, 2010.
"Sizing the government,"
Springer, vol. 145(1), pages 39-55, October.
- Alena Kimakova, 2009. "Government size and openness revisited: the case of financial globalization," Kyklos, Wiley Blackwell, vol. 62(3), pages 394-406, 08.
- 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.
- Oates, Wallace E, 1985. "Searching for Leviathan: An Empirical Study," American Economic Review, American Economic Association, vol. 75(4), pages 748-57, September.
- 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.
- Sinha, Dipendra, 2007. "Does the Wagner’s Law hold for Thailand? A Time Series Study," MPRA Paper 2560, University Library of Munich, Germany.
- 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 A Cole & Robert J R Elliott & Jing Zhang, 2009. "Corruption, Governance and FDI Location in China: A Province-Level Analysis," Discussion Papers 09-14, Department of Economics, University of Birmingham.
- 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.
- 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.
- 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.
- Mueller,Dennis C., 2003. "Public Choice III," Cambridge Books, Cambridge University Press, number 9780521894753.
- 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.
- J. Ferris & Soo-Bin Park & Stanley Winer, 2008.
"Studying the role of political competition in the evolution of government size over long horizons,"
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.
- 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.
- 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.
- 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.
- Marlow, Michael L, 1991. " Privatization and Government Size," Public Choice, Springer, vol. 68(1-3), pages 273-76, January.
- John P. Burns, 2007. "Civil Service Reform in China," OECD Journal on Budgeting, OECD Publishing, vol. 7(1), pages 1-25.
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 (Christopher F. Baum)
If references are entirely missing, you can add them using this form.