Paper Titles in Periodical
International Letters of Social and Humanistic Sciences
ILSHS Volume 57
Subscribe

Subscribe to our Newsletter and get informed about new publication regulary and special discounts for subscribers!

ILSHS > ILSHS Volume 57 > Re-Examining the Wagner’s Law versus Keynesian...
Re-Examining the Wagner’s Law versus Keynesian Hypothesis: Evidence from Nigeria
< Back to Volume

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

Full Text PDF

Abstract:

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.

Info:

Periodical:
International Letters of Social and Humanistic Sciences (Volume 57)
Pages:
142-146
DOI:
https://doi.org/10.18052/www.scipress.com/ILSHS.57.142
Citation:
O. Owolabi-Merus, "Re-Examining the Wagner’s Law versus Keynesian Hypothesis: Evidence from Nigeria", International Letters of Social and Humanistic Sciences, Vol. 57, pp. 142-146, 2015
Online since:
August 2015
Authors:
O. Owolabi-Merus
Keywords:
Economic Growth, Granger Causality, Johansen Cointegration, Keynesian Hypothesis, Nigeria, Wagner’s Law
Export:
RIS, BibTeX, Text
Distribution:
Open Access

Creative Commons License
This work is licensed under a
Creative Commons Attribution 4.0 International License

References:

Aregbeyen, O. (2006) Cointegration, Causality and Wagner's Law: A Test for Nigeria, 1970- 2003,. Central Bank of Nigeria Economic and Financial Review, Volume 44 (2).

Dogan, E., & Tang, T. C. (2006). Government Expenditure and National Income: Causality Tests for Five South East Asian Countries. International Business and Economics Research Journal, 5, 49-58.

Engle, R. F. and C. W. J. Granger (1987). Co-integration and Error Correction: Representation, Estimation and Testing. Econometrica, 55, 251-276.

Liu Chih-HL, Hsu C, Younis MZ, 2008. The Association between Government Expenditure and Economic Growth: The Granger Causality Test of the US Data, 1974-2002. Journal of Public Budgeting, Accounting and Financial Management, 20(4): 439-52.

Loizides, J. and Vamvoukas, G. (2005); Government Expenditure and Economic Growth: Evidence from Trivariate Causality Testing., Journal of Applied Economics, Vol. 8, No. 1; pp.125-152.

Muhlis, B and Hakan C. (2003). Causality between Public Expenditure and Economic Growth: The Turkish Case. Journal of Economic and Social Research 6 (1): 53-72.

Olugbenga, A.O., 2009, Public Expenditure and Economic Growth: New Evidence from OECD Countries, The 67th International Atlantic Economic Conference, Rome, Italy.

Pahlavani, M., Abed, D. and Pourshabi, F. (2011), Investigating the Keynesian View and Wagner's Law on the Size of Government and Economic Growth in Ira, International Journal of Business and Social Science, No. 13 [Special Issue - July2011].

Rahman J., Iqbal A. and Siddiqi, M. (2010) Cointegration -Causality Analysis between Public expenditure and Economic Growth in Pakistan, European Journal of Social Sciences, 13(4), 556-565.

Ram, R. (1986). Causality between Income and Government Expenditure: A Broad International Perspective. Public Finance, 41, 393-413.

Samudram, M., and M. Nair, 2009. Vaithilingam S. Keynes and Wagner on government expenditures and economic development: the case of a developing economy. Empirical Economics 36(3), 697-712.

Sevietenyi, N.L. (2012). Government expenditure and economic growth in Nigeria: An empirical investigation (1961-2009). The Journal of Economic Analysis, 111(1), 38-51.

Show More Hide
Cited By:

[1] M. ATGÜR, "Kamu Harcamalarının Ekonomik Büyüme Üzerindeki Etkisi: Wagner Yasası’nın ve Keynesyen Hipotez’in Türkiye'de Geçerliliği Üzerine Bir İnceleme", Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 2020

DOI: https://doi.org/10.16951/atauniiibd.701686