Determinants of government size: Evidence from China

Alfred Wu and Mi Lin

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the determinants of government size at the provincial level in China. We employ the panel data model as a platform for empirical analysis and control for endogeneity in the study. Our study shows that openness to trade and foreign direct investment (FDI) may curtail government expansion, and that the provincial-level public sector is characterized by economies of scale. This study also documents that Wagner’s law does not hold true for China. Moreover, both expenditure decentralization and revenue decentralization contribute to the expansion of China’s government.

Keywords: Government; size; -; Wagner’s; law; -; Scale; effects; -; Openness; to; trade; -; Fiscal; decentralization (search for similar items in EconPapers)
JEL-codes: H11 H61 (search for similar items in EconPapers)
Date: 2010-11-23
New Economics Papers: this item is included in nep-pbe and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Determinants of government size: evidence from China (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:27089

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