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Wagner's Law in Sri Lanka : An Econometric Analysis
Author
Source
Issue
Vol. 2012, Issue 2012 (31 Dec. 2012), pp.1-8, 8 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2012-11-03
Country of Publication
Egypt
No. of Pages
8
Main Subjects
Abstract EN
This study examines whether there is empirical evidence that Wagner's law holds in the Sri Lankan economy using time series annual data over the period from 1960 to 2010 for Sri Lanka, applying cointegration and error correction modeling (ECM) techniques.
In particular, this study keeps a special focus to examine the validity of six versions of Wagner's hypothesis, which support the existence of long-run relationship between public expenditure and economic growth.
The empirical evidence of this study indicates that while there prevail is a short-run relationship between public expenditure and economic growth, the long-run results showed no strong evidence in support of the validity of the Wagner’s law for Sri Lankan economy.
Granger causality analysis also confirms this result.
Therefore, the findings of this study pave to broaden this study further for a deeper understanding about the relationship between public expenditure and economic growth by giving more attention on individual items of public expenditure and by including more macroeconomic variables in the econometric model using different methodology in future.
American Psychological Association (APA)
Kesavarajah, Mayandy. 2012. Wagner's Law in Sri Lanka : An Econometric Analysis. ISRN Economics،Vol. 2012, no. 2012, pp.1-8.
https://search.emarefa.net/detail/BIM-481905
Modern Language Association (MLA)
Kesavarajah, Mayandy. Wagner's Law in Sri Lanka : An Econometric Analysis. ISRN Economics No. 2012 (2012), pp.1-8.
https://search.emarefa.net/detail/BIM-481905
American Medical Association (AMA)
Kesavarajah, Mayandy. Wagner's Law in Sri Lanka : An Econometric Analysis. ISRN Economics. 2012. Vol. 2012, no. 2012, pp.1-8.
https://search.emarefa.net/detail/BIM-481905
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-481905