مجلة دراسات في الاقتصاد وإدارة الأعمال
Volume 4, Numéro 1, Pages 750-769
2021-06-19

Wagner’s Law In Algeria: An Econometric Analysis During 1967-2018

Authors : Ait Yahia Samir . Atmania Khadra .

Abstract

The study aims to test the validity of five versions of Wagner’s hypothesis for the Algerian case using time series annual data over the period from 1967 to 2018. The paper tries to examine the existence of long-run relationship between public expenditure and economic growth, and it has been used Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration and ECM based on ARDL procedure and granger causality test. The findings indicated that there is no cointegration between the variables whether in the Peacock-wiseman model (Model1) or in the Goffman one (Model 2). However, in case of Pryor (Model 3), Mustgrave (Model 4) and Mann (Model 5), the series are cointegrated. The estimated coefficients of the long-run relationships showed that Wagner’s law runs in Algeria in case of Pryor model (Model 03), While the coefficients of the long-run relationships in fourth and fifth model are not significant.

Keywords

Wagner’s Law ; Algeria ; ARDL