مجلة التمويل والاستثمار والتنمية المستدامة
Volume 6, Numéro 2, Pages 457-476
2021-12-31

Revisiting The Validity Of Wagner's Law In Algeria During 1970-2018: New Evidence From Linear And Nonlinear Models

Authors : Dahmani Mohamed Driouche . Bendahmane Amina . Chenini Moussa .

Abstract

This research aims to verify the validity of Wagner’s Law in Algeria during 1970-2018. Both linear and nonlinear models (ARDL, NARDL) are used to investigate this Law’s long-run relationship. The results showed a one-way connection from economic growth to government spending, also a linear and nonlinear cointegration of the relationship between them. Consequently, this result provides the theoretical support for the Wagner’s Law in Algeria for the six recognized versions that reflect the validity of this Law during the period of study.

Keywords

Government Spending ; Economic Growth ; Wagner’s Law ; ARDL ; NARDL ; Algeria