| Author(s) | Hamad M. H. AI-Sheikh |
| Affiliation | Assistant Professor, Economics Department College of Administrative Sciences, King Saud University P.G. Box 2459, Riyadh 11451, Saudi Arabia alsheikh@ksu.edu.sa |
| Title | The Relationship between Government Spendings and Economic Growth in Wagner'sLaw: An International Evidence |
| Source | Journal of King Saud University. Administrative Sciences. Volume 14, No 1. (2002/1422) |
| Abstract | The study investigates the existence ofWagner's law using error correction models. The sample countries in this study include: Cyprus, Egypt, Greece, India, Indonesia, Iran, Jordan, Malta, Malaysia, Morocco, Nigeria, Oman, Pakistan, Philippines, Portugal, Saudi Arabia, Singapore, Spain, South Africa, Sri Lanka, Syria, Thailand, Tunisia, Turkey, UK, USA and Venezuela. The results show that while there is little evidence on uni-directional causality, bi-directional or mutual causality between the share of real government expenditure and real GDP per capita is the dominating feature. The study points to the danger of relying on one test for cointegration. It also shows that bi-directional or mutual causality implies the co-existence of Wagner's law and the Keynesian macroeconomic approach which is consistent with the spirit of cointegration. |
