Economic growth and government expenditure in China
In this paper, I study the relationship between government expenditure and GDP in China using modern time series econometric techniques. To my knowledge, there has not been any previous study exploring such relationship for China. The regression results find general support for the existence of a strong positive relationship between government expenditure and GDP. The Granger causality tests indicate that there is some evidence that causality flows from government expenditure to GDP but not the other way around.
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