Nigeria Economic Recess versus Wagner’s Law and Keynesian Proposition

Adedokun, Adebayo; Olaniyi, Clement Olalekan

doi:10.4172/2162-6359.1000424

Cited by 3 publications

(5 citation statements)

References 19 publications

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“…By implication, a bidirectional relationship subsists between this two. This finding thus support Santos (2–13) and Adedokun, & Olaniyi (2017) (see Table 9 ).…”

Section: Results and Analysissupporting

confidence: 87%

“…The Granger causality test is used to further confirm the directional relationship between the series. As WP opined, government expansion necessitates increased spending or vice-versa (Adedokun and Olaniyi, 2017). Thus, the two are complementary.…”

Section: Ardl Model Resultsmentioning

confidence: 99%

“…The duo sees no long-run relationship between government spending and national income but confirm a bi-directional causality. This outcome is inverse of Alimi (2013) , Eze (2016) , Adedokun & Olaniyi (2017) of the same country. In Turkey, Kucukkale and Yamak (2012) use of cointegration and causality test to validate whether public expenditure and economic growth proposition n WP is valid reports a bidirectional relationship in their outcome.…”

Section: Literature Reviewmentioning

confidence: 89%

“…It then means that since, 3.42 falls below the lower bound I(0), we can conclude that there is statistically insignificant relationship between real gross domestic product and government total spending in Nigeria for the period in review. This invalidate Adedokun & Olaniyi (2017) summation of significant cause between government expenditure and growth of WP proposition. By implication, a long run cointegration does not exist between real gross domestic product and government total spending.…”

Section: Bound Testing Wald Testmentioning

confidence: 96%

See 3 more Smart Citations

Wagner proposition in Nigeria: An econometric analysis

Babajide

Okunlola

Nwuba

et al. 2020

Heliyon

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Succinct exploration of Adolph Wagner's Proposition [WP] 1883-Peacock and Wiseman 1961version was put to the validation test in the study. At least, this time, for a quinaquina octo annis period, representing the life span of Nigeria. Specific suspicion of shocks from data from the world indicator and monetary authority necessitated the adoption of the ADF test with structural breaks, which came out positive at alternating integrating order. This propelled the Autoregressive Distributed Lag ARDL model path having specified the lag selection automatically. Even though the series showed significant association in the short run, and bi-directional causality, the result of the Bound test-F-statistics (calculated) ¼ 3.42 falls below upper Bound I(0) ¼ 4.68 and lower bound I(1) ¼ 5.15 hence, invalidates the WP position in the longrun in Nigeria. This is an indication that a reduction in noneconomically viable and overlapping, funds-straining ministries/departments/agencies (MDA) is indispensable.

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“…By implication, a bidirectional relationship subsists between this two. This finding thus support Santos (2–13) and Adedokun, & Olaniyi (2017) (see Table 9 ).…”

Section: Results and Analysissupporting

confidence: 87%

Section: Ardl Model Resultsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 89%

Section: Bound Testing Wald Testmentioning

confidence: 96%

See 2 more Smart Citations

Wagner proposition in Nigeria: An econometric analysis

Babajide

Okunlola

Nwuba

et al. 2020

Heliyon

View full text Add to dashboard Cite

show abstract

“…Many empirical and descriptive studies have been done to test the validity of Wagner's law of increasing State's activity. Most of them found support for Wagner's law using cross-section, time series, and panel data for different regions of the world [9,10,11,12,13,14,15,16,17]. Particularly Paldan and Zeuthen [13] used timeseries data from 1948-85 for Denmark applying Ordinary Least Square (OLS) to total government consumption and transfers and found strong support for Wagner's law.…”

Section: Wagner's Law: the Conceptual Frameworkmentioning

confidence: 99%

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

Sharma

Singh

2019

SAJSSE

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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 2017.2 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.

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The Linkage Between Government Expenditure and National Income: the Case of Bangladesh

Khanom,

Uddin,

Uddin

et al. 2024

RGSA

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Objective: This study examines the applicability of Keynesian and Wagner's law in terms of gross national expenditure (GNE) and gross national income (GNI) in Bangladesh. Theoretical Framework: According to Wagner's Law, a country's government spending rises in tandem with its national income. The opposite is true, according to the Keynesian Law, which claims that government spending increases GDP. Methodology: This study is a quantitative and secondary data based analysis. It makes use of time series data spanning the years 1981 to 2020. All variables' data were gathered from the World Bank's compilation of global development indicators. In order to exclude years with outlier data, the current study did not include variables' data from 1971 to 1980 (The abnormality occurred in 1971 for the war of liberty; in 1974 for the Famine and in 1975 for the political violence). Once the sequence of integration with ADF had been determined; the ARDL bounds testing technique and Granger causality test were used. Results and Discussion: According to the findings of the ARDL bounds test, there is a long-term correlation between government spending and gross domestic product. Government spending likely contributes significantly to the causes of national income, according to the slope coefficients from long-run equations. Granger causality findings show that government spending and national income have a one-way causal link but not the other way around. Research Implications: One possible explanation for this result is that recent government spending on development projects boost up the national income. Originality/Value: We contribute to the literature in two important ways. The first contribution is that we focus on more robust estimation methodologies. Unlike previous studies of Bangladesh context, we apply ARDL bounds test approach to co-integration. In addition to having advantageous small sample characteristics, the ARDL limits testing approach does not necessitate the same order of integration in the variables. With these considerations, this technique suits better in case of Bangladesh given that data would be of a small span. And second, we examined both of the Wagner’s Law and Keynesian Law for Bangladesh with two separate equations, unlike the previous studies on Bangladesh who investigated the Wagner’s equation only.

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Nigeria Economic Recess versus Wagner’s Law and Keynesian Proposition

Cited by 3 publications

References 19 publications

Wagner proposition in Nigeria: An econometric analysis

Wagner proposition in Nigeria: An econometric analysis

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

The Linkage Between Government Expenditure and National Income: the Case of Bangladesh

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