Bounds testing to cointegration of Equation (1)

With expenditure decentralization

With revenue decentralization

With composite decentralization

Optimal Lag Length

(3, 3, 2, 1, 4, 3)

(3, 4, 4, 4, 4, 4)

(4, 4, 4, 3, 4, 4)

F-statistics

11.184

74.077

3.005

Critical values (T = 37)

I(0) Bound

I(1) Bound

10%

2.08

2.9

5%

2.39

3.38

2.5%

2.7

3.73

1%

3.06

4.15