A reconsideration of Wagner's hypothesis for Nigeria using linear and nonlinear ARDL methods Online publication date: Thu, 07-Jan-2021
by Isiaka Akande Raifu; Alarudeen Aminu
International Journal of Sustainable Economy (IJSE), Vol. 12, No. 4, 2020
Abstract: This study examines the validity of symmetric and asymmetric Wagner's hypothesis for Nigeria using a dataset that spans the period from 1981 to 2016. Five versions of Wagner's hypothesis are specified and estimated with both the linear and nonlinear ARDL techniques. It is found that symmetric Wagner's hypothesis only holds in two of the versions (Peacock and Wiseman, 1961; Goffman, 1968). Only short-run asymmetric relationship exists between government expenditure and economic growth. However, cointegration exists between government expenditure and economic growth using linear and nonlinear ARDL. Granger-causality test supports Wagner's law while Toda-Yamamoto causality test produces mixed results. It is recommended that government may need to implement growth-promoting and sustainable expenditure policies so that a steady positive relationship can be established continuously between government expenditure and economic growth from the short to the long run.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
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 Sustainable Economy (IJSE):
Login with your Inderscience username and 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
Our Blog 
Follow us on Twitter 
Visit us on Facebook