 WAGNER’S LAW REVİSİTED: THE CASE OF NIGERIAN AGRICULTURAL SECTOR (1961 – 2012)Otu William Ibok and Nsikan Edet Bassey International Journal of Food and Agricultural Economics (IJFAEC), 2014, vol. 02, issue 3, 14 Abstract: This study examines whether government spending in the Nigerian Agricultural sector has been consistent with Wagner' Law. To test the validity of Wagner's law, six alternative functional forms were adopted, using annual data from the Nigerian agricultural sector over the time period 1961 - 2012. Data was analyzed using cointegration and granger causality test. The result of the Johansen and Juselius cointegration test showed the existence of a long run relationship between various items of agricultural capital expenditure as well as agricultural contribution to Gross Domestic Product. The granger causality test result confirmed that Wagner's law holds in the Nigerian agricultural sector. However, there was no clear evidence of government spending causing national income. Hence, the Keynesian proposition of government spending as a policy instrument that encourage and lead growth in the sector is not supported by the data used. Keywords: Agricultural and Food Policy; Financial Economics; Political Economy; Public Economics (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:ijfaec:186264 Access Statistics for this article More articles in International Journal of Food and Agricultural Economics (IJFAEC) from Alanya Alaaddin Keykubat University, Department of Economics and Finance Contact information at EDIRC. |
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