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Economic and Financial Review

Publisher

Central Bank of Nigeria, Research Department.

Keywords

Government size, Economic growth, Wagner's hypothesis, Fully modified ordinary least square

Abstract

This paper attempted an empirical validation of Wagner's law in Nigeria using quarterly data for the period 1982 to 2012. The hypothesis that real income does not Granger-cause government expenditure was rejected. Adopting the Fully Modified Ordinary Least Square (FMOLS) regression techniques, the study found support for the Wagner's hypothesis in Nigeria. The analysis provided empirical evidence to support the existence of a long-run equilibrium relationship between economic activity and government expenditure in Nigeria.

Issue

51

Volume

3

Recommended Citation

Dogo, M.Y.et al. (2013). Government size and economic growth in Nigeria: a test of Wagner's hypothesis. Economic and Financial Review, 51(3). 57 - 85

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