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Does the Pakistan's economy support Wagner's law?

Thesis Info

Author

Faraz-ur-Rehman

Program

MS

Institute

Institute of Business Administration

Institute Type

Private

City

Karachi

Province

Sindh

Country

Pakistan

Thesis Completing Year

2017

Page

14

Subject

Economics

Language

English

Other

CallNo: 330.95491

Added

2021-02-17 19:49:13

Modified

2024-03-24 20:25:49

ARI ID

1676720930897

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The subject study endeavours to observe the Law of Wagner with all six versions in Pakistan covering the period from 1981 till 2016. Law of Wagner describes the connection between economic-growth and expenditure of government i.e.the rise in general public expenses is a natural upshot for the increase in economic growth respectively. For this purpose, ADF test and co-integration technique has been applied to checkout the long run connection among the variables. In addition, ECM is also applied to find any short run relationship and to see whether the variables converges towards the equilibrium or diverges. Other than the possible reasons for the increase in government expenditure and Law of Wagner validity particularly in the perspective of developing countries. Conclusion emerges from the empirical results also supports the validity of Law of Wagner in case of Pakistan and found a long term connection between the variables of economic-growth and the public expenditure growth
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