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