Is Wagner or Keynes Right? Testing the Government Expenditure and Economic Growth Nexus in Malaysia

Judhiana Abd Ghani, Muzafar Shah Habibullah, M Azall and W.N.w Azman-Saini
Authors registered in the RePEc Author Service: M. Azali

The IUP Journal of Public Finance, 2005, vol. III, issue 4, 35-42

Abstract: This study attempts to test Wagnerian versus Keynesian hypotheses regarding the relationship between government expenditure and economic growth for Malaysia during the period 1959-96. The ARDL model approach proposed by Pesaran and Shin (1995) is employed to test these two hypotheses. The results of this study support both the hypotheses in the long-run, but in the short-run, the Keynesian hypothesis is supported by the data.

Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:icf:icfjpf:v:03:y:2005:i:4:p:35-42

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