Notice of RetractionGovernment expenditure and economic growth in China

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

When economists and politicians discuss the policies that could raise growth rates, usually fiscal policy takes centre stage. Using yearly data set from 1952 to 2008, this paper has proposed to use linear Granger causality to investigate the relationship between government expenditure and economic growth in China. The study finds that there is a strictly bidirectional Granger causality between the government expenditure and economic growth. The government expenditure drives economic growth and in turn is driven by economic growth. Furthermore, the bidirectional Granger causality is robust in eight years, after eight years the bidirectional Granger causality die out.