Wagner's law and public expenditure growth in Kuwait

OPEC Review ◽  
1999 ◽  
Vol 23 (2) ◽  
pp. 139-171 ◽  
Author(s):  
Nadeem A. Burney ◽  
Nadia Al-Mussallam
Keyword(s):  
Public Expenditure ◽  
Wagner’S Law ◽  
Expenditure Growth ◽  
Wagner's Law

scholarly journals Public expenditure growth in Greece and Portugal: Wagner's law and beyond

1993 ◽  
Vol 25 (1) ◽  
pp. 125-134 ◽  
Author(s):  
Anthony S. Courakis ◽  
Fatima Moura-Roque ◽  
George Tridimas
Keyword(s):  
Public Expenditure ◽  
Wagner’S Law ◽  
Expenditure Growth ◽  
Wagner's Law

scholarly journals Wagner's Law in Sri Lanka: An Econometric Analysis

2012 ◽  
Vol 2012 ◽  
pp. 1-8 ◽  
Author(s):  
Mayandy Kesavarajah
Keyword(s):  
Economic Growth ◽  
Sri Lanka ◽  
Empirical Evidence ◽  
Public Expenditure ◽  
Special Focus ◽  
Annual Data ◽  
Sri Lankan ◽  
Wagner’S Law ◽  
Long Run ◽  
Wagner's Law

This study examines whether there is empirical evidence that Wagner's law holds in the Sri Lankan economy using time series annual data over the period from 1960 to 2010 for Sri Lanka, applying cointegration and error correction modeling (ECM) techniques. In particular, this study keeps a special focus to examine the validity of six versions of Wagner's hypothesis, which support the existence of long-run relationship between public expenditure and economic growth. The empirical evidence of this study indicates that while there prevail is a short-run relationship between public expenditure and economic growth, the long-run results showed no strong evidence in support of the validity of the Wagner’s law for Sri Lankan economy. Granger causality analysis also confirms this result. Therefore, the findings of this study pave to broaden this study further for a deeper understanding about the relationship between public expenditure and economic growth by giving more attention on individual items of public expenditure and by including more macroeconomic variables in the econometric model using different methodology in future.

scholarly journals The Validity of Wagner’s Law in India: A Post-liberalisation Analysis

2019 ◽  
pp. 1-13 ◽  
Author(s):  
Suraj Sharma ◽  
Surendra Singh
Keyword(s):  
Granger Causality ◽  
Urban Population ◽  
Public Expenditure ◽  
Government Expenditure ◽  
National Income ◽  
Causality Test ◽  
Wagner’S Law ◽  
Long Run ◽  
Percent Increase ◽  
Wagner's Law

Aims: The present study attempts to analyse the behavior of government expenditure in relation to national income using most appropriate advanced econometric techniques to test the Wagner’s law of increasing State’s activity in Indian scenario during the post-liberalisation period of 1988 to 2017. Data: The study uses the IMF database entitled “International Financial Statistics” and World Bank database entitled “World Development Indicators” for testing Wagner’s law for the Indian economy. Methodology: The study employs appropriate econometric techniques to our model where government expenditure is used as regressand and gross domestic product and urbanisation is used as regressors. The study first investigates for unit roots in data using ADF and PP tests. Further, to investigate any co-integration among variables the study employed Johansen co-integration test. Once co-integration is confirmed, a vector error correction model has been estimated and lastly, Granger causality test is applied to check for any causality. Results: The results of Vector Error Correction Model reveal that both the Gross Domestic Product and the urban population have a positive and statistically significant effect on government expenditure in the long-run. Ceteris paribus, every 1.0 percent increase in GDP leads 0.36 percent increase in government expenditure. On the other hand, 1.0 percent increase in urban population leads to a 3.75 percent increase in government expenditure. The Granger causality results divulge that there is unidirectional causality running from urban population to government expenditure, whereas neither unidirectional nor bidirectional causality was found between GDP and public expenditure. In short-run, neither GDP nor urban population influences public expenditure. Conclusion: To sum up, the present investigation provides support for Wagner’s law in case of India in the long run only. It has been found that urbanisation has a greater impact on public expenditure than the national income (GDP) and which is also supported by Granger causality test showing significant unidirectional causality running from level of urbanisation to government expenditure.

scholarly journals Re-Examining the Wagner’s Law versus Keynesian Hypothesis: Evidence from Nigeria

2015 ◽  
Vol 57 ◽  
pp. 142-146 ◽  
Author(s):  
O. Owolabi-Merus
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Public Expenditure ◽  
Capital Expenditure ◽  
Statistical Significance ◽  
Government Expenditure ◽  
Mutual Correlation ◽  
Wagner’S Law ◽  
Johansen Cointegration ◽  
Wagner's Law

This study investigates the Keynesian and Wagnerian views on public expenditure and economic growth in Nigeria using annual secondary data spanning from 1980 to 2011 obtained from the Central bank of Nigeria (CBN) statistical bulletins. The Augmented Dickey-Fuller (ADF), Johansen Cointegration and Granger Causality econometric methodologies were used in this study. The Johansen Cointegration test revealed the presence of a long-run cointegrated relationship between government expenditure (capital expenditure and recurrent expenditure) and economic growth (GDP) in Nigeria. The Granger Causality test found no mutual correlation between government expenditure (capital expenditure and recurrent expenditure) and economic growth (GDP) using the benchmark of 5% level of statistical significance. The findings of this study therefore indicate the non-existence of both Wagner’s Law and Keynesian Hypothesis on public expenditure and economic growth in Nigeria during the period under review.

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