Cointegration and Causality between Public Expenditure and Economic Growth: Case of Kyrgyzstan
According to Wagner’s law there is unidirectional relationship from economic growth to public expenditure. Wagner’s states that increase of national income leads to faster growth of public expenditure. In other words, out of economic and social development in the country, people will demand more pub...
| Main Authors: | , |
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| Format: | Article |
| Language: | Turkish |
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Usak University
2017-01-01
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| Series: | Optimum Ekonomi ve Yönetim Bilimleri Dergisi |
| Subjects: | |
| Online Access: | http://dergipark.gov.tr/download/article-file/267358 |
| _version_ | 1797922477966360576 |
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| author | Raziye ABDIYEVA Hakan ÇETİNTAŞ |
| author_facet | Raziye ABDIYEVA Hakan ÇETİNTAŞ |
| author_sort | Raziye ABDIYEVA |
| collection | DOAJ |
| description | According to Wagner’s law there is unidirectional relationship from economic growth to public expenditure. Wagner’s states that increase of national income leads to faster growth of public expenditure. In other words, out of economic and social development in the country, people will demand more public goods and it will increase public expenditure at a faster rate than national income.
This study is analyzing the long term and causality relationship between public expenditure and economic growth in Kyrgyzstan and tests the validity of Wagner's law in Kyrgyz economy by using an ARDL and Error Correction models over the period 1995 to 2014. Empirical results showed that there is an unidirectional causality relationship between economic growth and public expenditure in long term. Empirical evidence is support the validity of Wagner’s law in Kyrgyz economy. |
| first_indexed | 2024-04-10T14:31:58Z |
| format | Article |
| id | doaj.art-bd97817e99b14e29a395a42c29329066 |
| institution | Directory Open Access Journal |
| issn | 2148-4228 2148-4228 |
| language | Turkish |
| last_indexed | 2024-04-10T14:31:58Z |
| publishDate | 2017-01-01 |
| publisher | Usak University |
| record_format | Article |
| series | Optimum Ekonomi ve Yönetim Bilimleri Dergisi |
| spelling | doaj.art-bd97817e99b14e29a395a42c293290662023-02-15T16:08:45ZturUsak UniversityOptimum Ekonomi ve Yönetim Bilimleri Dergisi2148-42282148-42282017-01-0141193410.17541/optimum.285056Cointegration and Causality between Public Expenditure and Economic Growth: Case of KyrgyzstanRaziye ABDIYEVAHakan ÇETİNTAŞAccording to Wagner’s law there is unidirectional relationship from economic growth to public expenditure. Wagner’s states that increase of national income leads to faster growth of public expenditure. In other words, out of economic and social development in the country, people will demand more public goods and it will increase public expenditure at a faster rate than national income. This study is analyzing the long term and causality relationship between public expenditure and economic growth in Kyrgyzstan and tests the validity of Wagner's law in Kyrgyz economy by using an ARDL and Error Correction models over the period 1995 to 2014. Empirical results showed that there is an unidirectional causality relationship between economic growth and public expenditure in long term. Empirical evidence is support the validity of Wagner’s law in Kyrgyz economy.http://dergipark.gov.tr/download/article-file/267358Economic GrowthPublic ExpenditureWagner’s Law |
| spellingShingle | Raziye ABDIYEVA Hakan ÇETİNTAŞ Cointegration and Causality between Public Expenditure and Economic Growth: Case of Kyrgyzstan Optimum Ekonomi ve Yönetim Bilimleri Dergisi Economic Growth Public Expenditure Wagner’s Law |
| title | Cointegration and Causality between Public Expenditure and Economic Growth: Case of Kyrgyzstan |
| title_full | Cointegration and Causality between Public Expenditure and Economic Growth: Case of Kyrgyzstan |
| title_fullStr | Cointegration and Causality between Public Expenditure and Economic Growth: Case of Kyrgyzstan |
| title_full_unstemmed | Cointegration and Causality between Public Expenditure and Economic Growth: Case of Kyrgyzstan |
| title_short | Cointegration and Causality between Public Expenditure and Economic Growth: Case of Kyrgyzstan |
| title_sort | cointegration and causality between public expenditure and economic growth case of kyrgyzstan |
| topic | Economic Growth Public Expenditure Wagner’s Law |
| url | http://dergipark.gov.tr/download/article-file/267358 |
| work_keys_str_mv | AT raziyeabdiyeva cointegrationandcausalitybetweenpublicexpenditureandeconomicgrowthcaseofkyrgyzstan AT hakancetintas cointegrationandcausalitybetweenpublicexpenditureandeconomicgrowthcaseofkyrgyzstan |