![granger causality in eviews granger causality in eviews](https://www.eviews.com/EViews9/overview/timeseries.png)
However, with the reform and opening-up policy in 1978, the central government continued to run deficits for the next two years. In the 10 years before the reform and opening-up policy, the Chinese government had neither internal debt nor external debt. According to 18 years real data of 31 provinces inĮmpirical scheme and conduct Granger causality test in using econometric Growth and government debt of local government exit Reciprocal causation However, local governmentĭebt is not the Granger cause of local government economic growth, but it is Government debt and its performance is more significant. In the medium term, theĮconomic growth of local government is still the Granger cause of local
![granger causality in eviews granger causality in eviews](https://i.stack.imgur.com/RELsf.png)
Government debt is not a Granger cause of economic growth of local government. Government is the Granger cause of local government debt, but the local In the short term, the economic growth of local And there may not exist long-termĬointegration relationship between DEBT and GDP. Local government debt and economic growth in China is the second order sequences that are of single integer. On the basis of the first two steps, we conduct Granger causality test on DEBT and GDP. That data is stationary, and then, on thisĭetermine whether there is a long-term cointegration relationship between DEBT Combin ed with the practicalĪrticle takes 31 provinces of our country from 1995 to 2014 and 18 (2005, 2013, rejecting) local government debt andĮconomic growth data as samples. Of the relativity between government debt and economic growth is still In both the theoretical and empirical levels, both