Long-Run Fiscal Multiplier for Autonomous Prefectures in China

Yingxin Shi () and Mototsugu Fukushige ()
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Yingxin Shi: Department of Economics & Management, Dalian Nationalities University

No 13-10, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: We overcome the problems of data availability and investigate the fiscal multipliers in autonomous prefectures in China. We first estimate the long-run elasticity of gross regional production with respect to fiscal expenditure in autonomous prefectures, using autoregressive distributed lag models. The estimated long-run elasticity is much less than unity, however, and the estimated fiscal multipliers for prefectures are between 0.61 and 4.93, with an average of 1.93. These results indicate that additional fiscal expenditure is still effective in increasing local income and promoting economic growth for most of the autonomous prefectures.

Keywords: Fiscal Multiplier; Autonomous Prefecture; China; autoregressive distributed lag model (search for similar items in EconPapers)
JEL-codes: E62 H72 O11 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2013-06
New Economics Papers: this item is included in nep-cwa, nep-dev, nep-fdg, nep-pbe and nep-tra
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http://www2.econ.osaka-u.ac.jp/library/global/dp/1310.pdf (application/pdf)

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Journal Article: Long-Run Fiscal Multipliers for Autonomous Prefectures in China (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:1310

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