Panel Data, Cointegration, Causality and Wagner’s Law: Empirical Evidence from Chinese Provinces
نویسندگان
چکیده
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. ♣ Department of Accounting, Finance and Economics, Griffith University * Department of Management, Monash University ∗ Department of Economics, Monash University ◊ We thank Xiaolei Qian for research assistance with this project.
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