IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Panel Data, Cointegration, Causality And Wagner'S Law: Empirical Evidence From Chinese Provinces

  • Paresh Kumar Narayan
  • Ingrid Nielsen
  • Russell Smyth

This paper tests Wagner's law of increasing state activity using panels of Chinese provinces. The paper's main methodological contribution is in that we employ for the first time in the literature on Wagner's law a panel unit root, panel cointegration and Granger Causality testing approach. Overall, we find mixed evidence in support of Wagner's law for China's central and western provinces, but no support for Wagner's law for the full panel of provinces or for the panel of China's eastern provinces.

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.

File URL: http://www.buseco.monash.edu.au/eco/research/papers/2006/0106wagnerslaw.pdf
Download Restriction: no

Paper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 01/06.

as
in new window

Length: 24 pages
Date of creation: 01 Feb 2006
Date of revision:
Handle: RePEc:mos:moswps:2006-01
Contact details of provider: Postal: Department of Economics, Monash University, Victoria 3800, Australia
Phone: +61-3-9905-2493
Fax: +61-3-9905-5476
Web page: http://www.buseco.monash.edu.au/eco/
Email:


More information through EDIRC

Order Information: Web: http://www.buseco.monash.edu.au/eco/research/papers/ Email:


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.:

as in new window
  1. Tsangyao Chang & WenRong Liu & Steven Caudill, 2004. "A re-examination of Wagner's law for ten countries based on cointegration and error-correction modelling techniques," Applied Financial Economics, Taylor & Francis Journals, vol. 14(8), pages 577-589.
  2. Holmes, James M & Hutton, Patricia A, 1990. "On the Causal Relationship between Government Expenditures and National Income," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 87-95, February.
  3. 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.
  4. Oxley, Les, 1994. "Cointegration, Causality and Wagner's Law: A Test for Britain 1870-1913," Scottish Journal of Political Economy, Scottish Economic Society, vol. 41(3), pages 286-98, August.
  5. Pedroni, Peter, 1999. " Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 653-70, Special I.
  6. Bird, Richard M, 1971. "Wagner's o Law' of Expanding State Activity," Public Finance = Finances publiques, , vol. 26(1), pages 1-26.
  7. Abizadeh, Sohrab & Yousefi, Mahmood, 1988. "An empirical re-examination of Wagner's law," Economics Letters, Elsevier, vol. 26(2), pages 169-173.
  8. Hayo, Bernd, 1994. "No Further Evidence of Wagner's Law for Mexico," Public Finance = Finances publiques, , vol. 49(2), pages 287-94.
  9. Anisul Islam, 2001. "Wagner's law revisited: cointegration and exogeneity tests for the USA," Applied Economics Letters, Taylor & Francis Journals, vol. 8(8), pages 509-515.
  10. Song, Shunfeng & Chu, George S. -F. & Chao, Rongqing, 2000. "Intercity regional disparity in China," China Economic Review, Elsevier, vol. 11(3), pages 246-261.
  11. Michael Chletsos & Christos Kollias, 1997. "Testing Wagner's law using disaggregated public expenditure data in the case of Greece: 1958-93," Applied Economics, Taylor & Francis Journals, vol. 29(3), pages 371-377.
  12. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
  13. Bagala Biswal & Urvashi Dhawan & Hooi-Yean Lee, 1999. "Testing Wagner versus Keynes using disaggregated public expenditure data for Canada," Applied Economics, Taylor & Francis Journals, vol. 31(10), pages 1283-1291.
  14. M. I. Ansari & D. V. Gordon & C. Akuamoah, 1997. "Keynes versus Wagner: public expenditure and national income for three African countries," Applied Economics, Taylor & Francis Journals, vol. 29(4), pages 543-550.
  15. Lee, Jongchul, 2000. "Changes in the source of China's regional inequality," China Economic Review, Elsevier, vol. 11(3), pages 232-245.
  16. Henrekson, Magnus, 1993. "Wagner's Law--A Spurious Relationship?," Public Finance = Finances publiques, , vol. 48(3), pages 406-15.
  17. Yang, Dennis Tao, 2002. "What has caused regional inequality in China?," China Economic Review, Elsevier, vol. 13(4), pages 331-334, December.
  18. Tsangyao Chang, 2002. "An econometric test of Wagner's law for six countries based on cointegration and error-correction modelling techniques," Applied Economics, Taylor & Francis Journals, vol. 34(9), pages 1157-1169.
  19. Jian, T & Sachs, J-D & Warner, A-M, 1995. "Trends in Regional Inequality in China," Papers 518, Harvard - Institute for International Development.
  20. Abizadeh, Sohrab & Yousefi, Mahmood, 1998. "An empirical analysis of South Korea's economic development and public expenditures growth," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 27(6), pages 687-700.
  21. A. A. Asseery & D. Law & N. Perdikis, 1999. "Wagner's Law and public expenditure in Iraq: a test using disaggregated data," Applied Economics Letters, Taylor & Francis Journals, vol. 6(1), pages 39-44.
  22. Hondroyiannis, George & Papapetrou, Evangelia, 1995. "An Examination of Wagner's Law for Greece: A Cointegration Analysis," Public Finance = Finances publiques, , vol. 50(1), pages 67-79.
  23. Bharat Kolluri & Michael Panik & Mahmoud Wahab, 2000. "Government expenditure and economic growth: evidence from G7 countries," Applied Economics, Taylor & Francis Journals, vol. 32(8), pages 1059-1068.
  24. Kanbur, Ravi & Zhang, Xiaobo, 1999. "Which Regional Inequality? The Evolution of Rural-Urban and Inland-Coastal Inequality in China from 1983 to 1995," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 686-701, December.
  25. Ram, Rati, 1986. "Causality between Income and Government Expenditure: A Broad International Perspective," Public Finance = Finances publiques, , vol. 41(3), pages 393-414.
  26. Ferda Halicioglu, 2005. "Testing Wagner's Law for Turkey, 1960-2003," Public Economics 0502013, EconWPA.
  27. Nomura, Masuo, 1995. "Wagner's Hypothesis and Displacement Effect in Japan, 1960-1991," Public Finance = Finances publiques, , vol. 50(1), pages 121-35.
  28. Mahmoud Wahab, 2004. "Economic growth and government expenditure: evidence from a new test specification," Applied Economics, Taylor & Francis Journals, vol. 36(19), pages 2125-2135.
  29. Bao, Shuming & Chang, Gene Hsin & Sachs, Jeffrey D. & Woo, Wing Thye, 2002. "Geographic factors and China's regional development under market reforms, 1978-1998," China Economic Review, Elsevier, vol. 13(1), pages 89-111.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:mos:moswps:2006-01. 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: (Simon Angus)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.