Determinants of government size: evidence from China

Wu, Alfred M. and Lin, Mi (2012) Determinants of government size: evidence from China. Public Choice, 151 (1-2). pp. 255-270. ISSN 0048-5829

Full content URL: http://dx.doi.org/10.1007/s11127-010-9746-y

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Item Type:Article
Item Status:Live Archive

Abstract

his 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
Subjects:L Social studies > L200 Politics
Divisions:Lincoln International Business School
ID Code:9767
Deposited On:07 Jun 2013 10:25

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