Public Expenditure and National Income: Time Series Evidence from Nigeria
<p>The paper investigates the relationship between national income and government aggregate expenditure in Nigeria by testing the validity of Wagner’s law and Keynes’s hypothesis for the period between 1970 and 2014. More specifically, by applying time-series analysis, government-spending and...
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| Format: | Article |
| Language: | English |
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EconJournals
2018-01-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/5875 |
| _version_ | 1797913144632279040 |
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| author | E. Chuke Nwude Tarila Boloupremo |
| author_facet | E. Chuke Nwude Tarila Boloupremo |
| author_sort | E. Chuke Nwude |
| collection | DOAJ |
| description | <p>The paper investigates the relationship between national income and government aggregate expenditure in Nigeria by testing the validity of Wagner’s law and Keynes’s hypothesis for the period between 1970 and 2014. More specifically, by applying time-series analysis, government-spending and national-income variables were found to be non-stationary and cointegrated, thus satisfying a long-run equilibrium condition. In addition, through the application of Granger causality tests to error correction models, unidirectional causality, running from Gross Domestic Product (GDP) to government-expenditure variables, could be established between the variables and, therefore, only Wagner’s law was found to be valid in Nigeria’s case for the period of study.</p><p><strong>Keywords</strong>: Public expenditure; Wagner’s law; causality; unit roots; cointegration</p><p><strong>JEL Classifications:</strong> H5, P44</p> |
| first_indexed | 2024-04-10T12:07:12Z |
| format | Article |
| id | doaj.art-aaab58c8c4f243029f5ca19952784ce8 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T12:07:12Z |
| publishDate | 2018-01-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-aaab58c8c4f243029f5ca19952784ce82023-02-15T16:16:10ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382018-01-018171763074Public Expenditure and National Income: Time Series Evidence from NigeriaE. Chuke NwudeTarila Boloupremo<p>The paper investigates the relationship between national income and government aggregate expenditure in Nigeria by testing the validity of Wagner’s law and Keynes’s hypothesis for the period between 1970 and 2014. More specifically, by applying time-series analysis, government-spending and national-income variables were found to be non-stationary and cointegrated, thus satisfying a long-run equilibrium condition. In addition, through the application of Granger causality tests to error correction models, unidirectional causality, running from Gross Domestic Product (GDP) to government-expenditure variables, could be established between the variables and, therefore, only Wagner’s law was found to be valid in Nigeria’s case for the period of study.</p><p><strong>Keywords</strong>: Public expenditure; Wagner’s law; causality; unit roots; cointegration</p><p><strong>JEL Classifications:</strong> H5, P44</p>https://www.econjournals.com/index.php/ijefi/article/view/5875 |
| spellingShingle | E. Chuke Nwude Tarila Boloupremo Public Expenditure and National Income: Time Series Evidence from Nigeria International Journal of Economics and Financial Issues |
| title | Public Expenditure and National Income: Time Series Evidence from Nigeria |
| title_full | Public Expenditure and National Income: Time Series Evidence from Nigeria |
| title_fullStr | Public Expenditure and National Income: Time Series Evidence from Nigeria |
| title_full_unstemmed | Public Expenditure and National Income: Time Series Evidence from Nigeria |
| title_short | Public Expenditure and National Income: Time Series Evidence from Nigeria |
| title_sort | public expenditure and national income time series evidence from nigeria |
| url | https://www.econjournals.com/index.php/ijefi/article/view/5875 |
| work_keys_str_mv | AT echukenwude publicexpenditureandnationalincometimeseriesevidencefromnigeria AT tarilaboloupremo publicexpenditureandnationalincometimeseriesevidencefromnigeria |