A bound testing analysis of Wagner's law in Nigeria: 1970–2006

Economic Development and Government Spending: An Exploration of Wagner’s Hypothesis during Fifty Years of Growth in East Asia

“…Similarly, Lamartina and Zaghini (2011) [7] and Magazzino (2012) [8] find support for the law using a panel data set on 23 OECD countries and the EU-27 countries, respectively. In contrast, lack of support for the law is reported by Babatunde (2011) [9] for Nigeria; by Wu and Lin (2012) [10] for Chinese provinces; and by Dogan and Tang (2006) [11] for five South East Asian economies. However, Narayan, et al [12] report mixed evidence in support of the law using data on Chinese provinces.…”

Nigeria Economic Recess versus Wagner’s Law and Keynesian Proposition

“…In the first instance, there are no study earlier than five years, secondly, the existing studies hold contradictory positions. For instance, Babatunde [1] used data between 1970 and 2006 inclusive, but could not establish long run relationship between income and expenditure, meanwhile in his short-run analysis, Wagner's law could not be established but argued for weak validity of Keynesian position. In another study by Chimobi over the same period of 1970 to 2005 but published in 2016, it is validated that there is no long-run relationship between the expenditure and income, but short run analysis shows that Wagner's law could not be established rather the Keynesian position, Chimobi [2].…”

Government Expenditure in Nigeria: Determinants and Trends

“…Many of these empirical studies focus on the determinants of military spending (Davoodi, Clements, Schiff & Debaere, 2001;De Masi & Lorie, 1989;Schiff, Gupta & Clements, 1998;Gupta, Sanjeev, McDonald& Ruggiero, 1998;Hewitt, 1991Hewitt, , 1992Hewitt, & 1993, since military expenditure absorbs more than 5 percent of world resources annually. Related studies investigated for Nigeria (Taiwo, 1989;Babatunde, 2011;Aregbeyen & Akpan, 2013) suggest that per capita income, government revenue, demographics and institutional variables are significant determinants of government expenditure. These variables are in line with existing empirical literature and have also been included in this study.…”