WAGNER’S LAW IN SAUDI ARABIA 1970 - 2012: AN ECONOMETRIC ANALYSIS
Journal Title: Asian Economic and Financial Review - Year 2013, Vol 3, Issue 5
Abstract
Our goal in this paper is to explorethe validity of Wagner’s Law in Saudi Arabia during the period (1970-2012) for real oil GDP and Non-oil GDP.Wagner’s Law investigated that fundamental economic growth is validity to the public sector growth. In the previousstudies have been tested the six versions of Wagner’s law to support the existence of long-run relationship between government expenditure and economic growth.We used a method as a time series econometrics techniques to examine how far Wagner’s Law validity can be applied in Saudi economy. The results obtained from the analyses find that the Wagnerian proposition can explain the growth of government in Saudi Arabia, which holds for both the oil and non-oil income cases. The findings also note that the existence of strong causality for all of Wagner’s law versions in the long run.
Authors and Affiliations
Mohammed Moosa Ageli| Assistant Professor of Economics, King Saud University, Riyadh, Saudi Arabia
Keywords
Related Articles
- EP ID EP1915
- DOI -
- Views 498
- Downloads 29
THE IMPACT OF ECONOMIC FREEDOM UPON ECONOMIC GROWTH: AN APPLICATION ON DIFFERENT INCOME GROUPS
The objective of the study is to investigate the relationship between economic growth and economic freedom for different income groups. Therefore, the data were collected from 94 different countries belonging to five dif...
STOCK MARKET INTEGRATION IN WEST AFRICAN MONETARY ZONE: A LINEAR AND NONLINEAR COINTEGRATION APPROACH
The capital market plays a significant role in the development of an economy and hence an important determinant of regionalisation and single currency area formation. Stock and other capital markets have been found to pr...
EVALUATION IN DYNAMIC PROCESS SPILLOVER EFFECT: ELEVEN MAJOR EXCHANGE RATE MARKETS
This paper analyzes the dynamic process of the spillover effects among major eleven exchange rate markets. The period spanning from 2000 to 2014 includes several financial crises and Chinese monetary reforms. By the vect...
THE DYNAMIC RELATIONSHIP BETWEEN STOCK VOLATILITY AND TRADING VOLUME
The objective of the study is to measure the relationship between trading volume and returns; and change in trading volume and returns of stocks in Pakistan.Various techniques such as Unit root tests and GARCH have been...
FINANCE-GROWTH NEXUS IN BANGLADESH? AN EMPIRICAL ANALYSIS
We examine the empirical relationship between financial and economic growth in Bangladesh over the period of 1985-2014. Augmented Dickey Fuller (ADF) test is performed for checking the stationarity properties and it is r...