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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Main Authors: E. Chuke Nwude, Tarila Boloupremo
Format: Article
Language:English
Published: EconJournals 2018-01-01
Series:International Journal of Economics and Financial Issues
Online Access:https://www.econjournals.com/index.php/ijefi/article/view/5875
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spelling doaj-aaab58c8c4f243029f5ca19952784ce82020-11-25T01:45:14ZengEconJournalsInternational 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
collection DOAJ
language English
format Article
sources DOAJ
author E. Chuke Nwude
Tarila Boloupremo
spellingShingle E. Chuke Nwude
Tarila Boloupremo
Public Expenditure and National Income: Time Series Evidence from Nigeria
International Journal of Economics and Financial Issues
author_facet E. Chuke Nwude
Tarila Boloupremo
author_sort E. Chuke Nwude
title Public Expenditure and National Income: Time Series Evidence from Nigeria
title_short 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_sort public expenditure and national income: time series evidence from nigeria
publisher EconJournals
series International Journal of Economics and Financial Issues
issn 2146-4138
publishDate 2018-01-01
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>
url https://www.econjournals.com/index.php/ijefi/article/view/5875
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