Published May 30, 2024 | Version CC-BY-NC-ND 4.0
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Exploring Wagner's Law in India: An Empirical Study of Economic Growth and Public Expenditure

Creators

  • 1. Associate Professor, Department of Economics, SGTB Khalsa College, University of Delhi, New Delhi India.

Contributors

  • 1. Associate Professor, Department of Economics, SGTB Khalsa College, University of Delhi, New Delhi India.

Description

Abstract: In this research paper, we test the connections between public spending and economic growth in India by employing annual data from 1981-82 till 2019-20. We examine if there is a long-run relation between public spending and economic growth and then we try to understand the direction of causality between them by using six versions of Wagner's law along with an augmented version. The paper employs tests of stationarity, cointegration, granger causality and the vector error correction model for the analysis in all the versions. Results from these tests show that only some versions give support to validate Wagners' law in India over the sample period studied.

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Additional details

Identifiers

DOI
10.54105/ijef.A2574.04010524
EISSN
2582-9378

Dates

Accepted
2024-05-15
Manuscript received on 30 April 2024 | Revised Manuscript received on 14May 2024 | Manuscript Accepted on 15 May 2024 | Manuscript published on 30 May 2024.

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