Revisiting the Wagner’s law for Indian States using second generation panel cointegration

Nirola, Nupur; Sahu, Sohini

doi:10.1007/s10644-018-9237-6

Cited by 9 publications

(6 citation statements)

References 31 publications

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“…The analysis results are similar to the results of the research of Ahuja and Pandit [58] and Ansari et al [75]. The analysis results of the study are opposite of the results of the research of Husnain [40], Agayev [5], Bayrak and Esen [41], Magazzino [42], Karhan [43], Nirola and Sahu [44], Karas [45], and Balaban and Zivkov [46]. The estimation results for Model2, in which the Keynes model is examined for the G-20 countries, are presented in Table 6.…”

Section: Panel Cointegration Analysissupporting

confidence: 82%

“…Moreover, Adil et al [38] detected a weak relationship, while Wijeweera and Garis [39] and Konya and Abdullaev [7] could not reach a distinct conclusion on this issue. Husnain [40], Agayev [5], Bayrak and Esen [41], Magazzino [42], Karhan [43], Nirola and Sahu [44], Karas [45], and Balaban and Zivkov [46] who tested Wagner's Law with panel data analysis pointed out that Wagner's Law was valid in their studies; however, Kolapo et al [47] reached conclusions that did not support Wagner's Law.…”

Section: Selected Literaturementioning

confidence: 99%

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Wagner's Law vs. Keynesian Hypothesis: Empirical Evidence for G20 Countries

Öztaşkın¹,

Kara²

2022

aeb

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The economic growth-public expenditure relationship is one of the important subjects that both policymakers and scientists focus on during extraordinary conditions such as economic crises, natural disasters or epidemics. Despite the privatization practices and the efforts to adopt the minimal state approach proposed by neoliberalism, which have become widespread significantly since the 1970s, public expenditures increase the interest in the subject. The study analyses the validity of the Keynesian approach, which argues that public expenditures are a fiscal policy tool that supports economic growth, in G-20 countries, as opposed to Wagner's approach, which argues that economic growth is the reason for the increase in public expenditures. The analysis was carried out with the Pesaran CCEMG estimator, which considers cross-sectional dependence and heterogeneity, using annual data from 1994-2017. According to the findings, it could be stated that Wagner's Law is not valid in G-20 countries because the slope coefficient does not fulfil the condition of being more significant than 1, whereas the Keynesian approach is valid. Moreover, a bidirectional causality was discovered between economic growth and public expenditures. Consequently, public expenditures can be used as an effective fiscal policy tool to eliminate economic instabilities under political, economic, or extraordinary conditions such as COVID-19.

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Section: Panel Cointegration Analysissupporting

confidence: 82%

Section: Selected Literaturementioning

confidence: 99%

Wagner's Law vs. Keynesian Hypothesis: Empirical Evidence for G20 Countries

Öztaşkın¹,

Kara²

2022

aeb

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“…Using linear Granger causality tests, the results showed that Wagner's law of increasing state activities applies in four GCC countries. The same results were gathered in the study conducted by Nirola and Sahu (2018). Using panel estimation methods, their results indicated that Wagner's law applies to the all-India level concerning all categories of government expenditure during India post-liberalization 1991.…”

Section: Economic Growth On Public Expendituresupporting

confidence: 64%

An Empirical Analysis on the Determinants of Public Education Expenditure in the Philippines

Almadin

Antiporda

S.Suin³

2022

JEFAS

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Using time-series data from 1989 to 2018, this study examines the determinants of public education expenditure in the Philippines. Following Wagner’s law, this paper investigated the relationship of gross domestic product per capita, unemployment rate, urban population growth, and lagged public education expenditure to public education expenditure. The ordinary least squares (OLS) method was used to determine the significance of the variables, and statistical tests were conducted to measure the overall significance of the model. The findings show that gross domestic product per capita and lagged public education expenditure were positively significant determinants contributing to the Philippines' growth of public education expenditure. On the other hand, the unemployment rate and urbanization growth were insignificant and did not contribute to the increase in expenditure. The results also provided strong evidence on the relationship between GDP per capita and public education expenditure, supporting Wagner’s law in the Philippine context. Finally, this study recommends that policymakers review budget allocation and utilization to achieve wider education accessibility and better quality of education in the Philippines.

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“…We first performed the cross‐correlation test between units (cross‐sectional dependence test or CD test). Indeed, two generations of unit root tests are often used in panel data (Nirola & Sahu, 2020). The choice of unit root test will depend on the CD between the units.…”

Section: Methodsmentioning

confidence: 99%

Global value chains participation and environmental pollution in developing countries: Does digitalization matter?

Ali

Bataka

Wonyra

et al. 2023

J of Intl Development

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The study analyses the effect of global value chains participation (GVCP) on CO2 emissions and assesses whether digitalization technologies can enhance environmental quality. We use panel data estimation techniques for 112 developing countries over the period 1990–2018. Findings show that the GVCP contributes to environmental degradation. Other factors that increase environmental damage include FDI inflows, industrial value‐added and electricity consumption. However, renewable energy consumption significantly reduces CO2 emissions. Findings show that digitalization is an effective channel in reducing CO2 emissions in the GVCP in developing countries. These findings have important policy implications in exploring the GVCP's development dynamics in upgrading opportunities from digital technologies to reduce environmental pollution and promote sustainable growth in developing economies.

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Revisiting the Wagner’s law for Indian States using second generation panel cointegration

Cited by 9 publications

References 31 publications

Wagner's Law vs. Keynesian Hypothesis: Empirical Evidence for G20 Countries

Wagner's Law vs. Keynesian Hypothesis: Empirical Evidence for G20 Countries

An Empirical Analysis on the Determinants of Public Education Expenditure in the Philippines

Global value chains participation and environmental pollution in developing countries: Does digitalization matter?

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