Bounds testing to cointegration of Equation (3) | With expenditure decentralization | With revenue decentralization | With composite decentralization |
Optimal Lag Length | (4, 4, 4, 3, 4, 4) | (4, 1, 4, 4, 4, 3) | (4, 4, 3, 4, 4, 3) |
F-statistics | 51.84 | 19.55 | 8.04 |
| Critical values (T = 37) | I(0) Bound | I(1) Bound |
10% |
| 2.08 | 3 |
5% |
| 2.39 | 3.38 |
2.5% |
| 2.7 | 3.73 |
1% |
| 3.06 | 4.15 |