PANEL DATA, COINTEGRATION, CAUSALITY AND WAGNER'S LAW: EMPIRICAL EVIDENCE FROM CHINESE PROVINCES

Paresh Narayan (), Ingrid Nielsen and Russell Smyth

No 01/06, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: 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.

Pages: 24 pages
Date: 2006-02-01
New Economics Papers: this item is included in nep-tra
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Panel data, cointegration, causality and Wagner's law: Empirical evidence from Chinese provinces (2008)
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