Panel Data, Cointegration, Causality and Wagner's Law: Empirical Evidence from Chinese Provinces
journal contributionposted on 08.06.2017 by Narayan, Paresh Kumar, Nielsen, Ingrid, Smyth, Russell
Any type of content formally published in an academic journal, usually following a peer-review process.
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.