A validation of Wagner's Law: a case study of Sri Lanka
by Ali Salman Saleh; Reetu Verma; Ranjith Ihalanayake
International Journal of Economics and Business Research (IJEBR), Vol. 14, No. 1, 2017

Abstract: This study provides evidence on the validity of Wagner's Law on the impact of government spending on economic growth in Sri Lanka. To test for stationarity, we use the Narayan and Popp's (2010) new Perron-type innovational unit root test; and to test for the long-run relationship, the study uses Hatemi's (2008) co-integration method. This study finds that a long-run relationship exists between GDP, consumption and investment expenditure. Various policy implications have also emerged from these findings. Studies on the impact of government spending on economic growth in the case of South Asian countries, and particularly for Sri Lanka, are very limited. The study disaggregates public expenditure into its two components and uses advanced methodologies which take into account structural breaks.

Online publication date: Sun, 30-Jul-2017

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economics and Business Research (IJEBR):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com