Theoretical and Applied Economics
No. 1 / 2020 (622), Spring
Testing Wagner’s Law for sub-Saharan Africa: A panel cointegration and causality approach
Department of Economics, University of Gambia
Abstract. Wagner’s law relates the positive relation between public spending and economic activity, where greater economic activity leads to increased public spending. Using Panel unit root, cointegration, Fully Modified Ordinary Least Squares (FMOLS) and Granger causality procedures this paper seeks to test the validity of Wagner’s law for a group of sixteen sub-Saharan African countries during the period 2002-2015. The findings show validity for Wagner’s law when “productive” government expenditure is taken as the measure of public spending. Compared to “productive” government expenditure, total government expenditure shows weaker evidence for the validity of Wagner’s law. Therefore governments in SSA should direct more spending towards productive expenditures if they seek to exploit growth benefits in the long run.
Contents
An approach to the use of cryptocurrencies in Romania using data mining technique
Intellectual property rights, human capital and types of entrepreneurship in emerging and developing countries
Trade relation between India and other BRICS countries: A multidimensional approach using Gravity Model and Granger Causality
Do the macroeconomic indicators influence foreign direct investment inflow? Evidence from India
Conceptual dimensions regarding the financial contagion and the correlation with the stock market in Romania
An analysis of poverty among the informal workers of India
Financial stress index, growth and price stability in India: Some recent evidence
Testing Wagner’s Law for sub-Saharan Africa: A panel cointegration and causality approach
A review of international Fisher’s effect focusing on inflation in Indian context for corporate decisions
Factors that influence wages differences in formal sector on male and female workers in Palembang City
Optimal Taylor rule in the new era central banking perspective
The analysis of the quarterly evolution of the gross domestic product in 2019
The analysis of the international trade of Romania
The Romanian population’s perceptions regarding income inequalities and discrimination