Business Administration and Business Economics
This study tests Wagner’s law in Nigeria in both the short and long-run using the
autoregressive distributed lag (ARDL) technique of estimation and controlling for structural breaks
between the periods 1981-2016. Results showed that both in the short and long-run, evidence pointed
to a negative but insignificant relationship between government expenditure and economic growth, with
a larger negative effect in the long-run. The study controlled for oil export earnings, which was found
to positively and significantly influence government spending in both the short and long-run. Results
did not support the Wagner law. It was therefore recommended that the economy be diversified into
more labour intensive sectors so as to increase output and income per capita and so that government
expenditure can be based more on tax receipts than on oil export earnings as more financially
responsible households will demand increase in government expenditure as their level of income
increases, especially for the provision of public sector services the households currently bear.
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Nigeria. Asian Journal of Economics and Empirical Research, 4(2), pp. 91-98.
Abu, N. & Abdullahi U. (2010). Government Expenditure and Economic Growth in Nigeria, 1970-
2008: A Disaggregated Analysis. Business and Economics Journal, 4, pp. 1-11.
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IIM Kozhikode Society & Management, Review, 6 (1), pp. 1–12.
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of Business Research, 7(1), pp. 33-42.
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Law in Developing Countries. European Journal of Political Economy, 22, pp. 908-924.
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Evidence from pre-WWII Greece. Panoeconomicus, 4, pp. 457-472.
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Research in Social Sciences, 5(3), pp. 74-83.
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Awomuse, B.O.; Olorunleke, K. & Alimi, R.S. (2013). The Effect of Federal Government Size on
Economic Growth in Nigeria, Munich Personal RePEc Archive, online at https://mpra.ub..unimuenchen.
de/53467/ MPRA Paper No. 53467.
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case of Turkey. Procedia Social and Behavioural Sciences, 195, pp. 493-500.
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Based on Co-integration and Error-correction Modelling Techniques. Applied Financial Economics,
14(8), pp. 577-589.
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Data in the case of Greece: 1958-93. Applied Economics, 29(3), pp. 371-377.
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of Wagner Hypothesis: Evidence form the UK. Applied Economics, 34 (13), pp. 1671-1677.
Danmola, R.A.; Olateju, A.O. & Abba, M.W. (2013). Nexus between Public Expenditure and Economic
Growth by testing the Wagner’s Law Time Series: Evidence from Nigeria. International Journal of
Development and Sustainability, 2(4), pp. 2383-2395.
Egunjobi, T.A. (2013). Re-engineering Public Expenditure Patterns for Economic Development in
Nigeria. Management Science and Engineering, 7(2), pp. 28-40.
Halicioglu, F. (2003). Testing Wagner’s Law for Turkey: 1960-2000. Review of Middle East Economics
and Finance, 1(2), pp. 129-140.
Ighodaro, A.U. & Oriakhi, D.E. (2010). Does the Relationship between Government Expenditure and
Economic Growth follow Wagner’s Law in Nigeria? Annals of the University of Petrosani, Economics,
10(2), pp. 185-198.
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Applied Economics Letters, 8(8), pp. 509-515.
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Evidence from G7 Countries. Applied Economics, 32(8), pp. 1059-1068.
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tests for New Zealand. Applied Economics, 44(5), pp. 1-11.
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Trivariate Causality Testing, Journal of Applied Economics, VIII(1), pp. 125-152.
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Muritala, T. & Taiwo, A. (2011). Government Expenditure and Economic Development: Empirical
Evidence from Nigeria, Munich Personal RePEc Archive, online at https://mpra.ub..unimuenchen.
de/37293/MPRA Paper No. 37293.
Nasiru, I. (2012). Government Expenditure and Economic Growth in Nigeria: Co-integration Analysis
and Causality Testing, Academic Research International, 2(3), pp. 718-723.
Nworji, I.A.; Okwu, A.T.; Obiwuru, T.C. & Nworji, L.O. (2012). Effects of Public Expenditure on
Economic Growth in Nigeria: A Disaggregated Time Series Analysis, International of Journal of
Management Sciences and Business Research, 1(7), pp. 1-15.
Ogbonna, B.C. (2012). Does the Wagner’s Law hold for Nigeria? 1950-2008. JORIND, 10(2), pp. 290-
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Journal of Management and Business Research, 13(5).
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