Empirical Analysis of the Wagner Hypothesis of Government Expenditure Growth in Kenya: ARDL Modelling Approach

John Kibara Manyeki () and Balázs Kotosz ()
Additional contact information
John Kibara Manyeki: University of Szeged
Balázs Kotosz: University of Szeged

Theory Methodology Practice (TMP), 2017, vol. 13, issue 02, 45-57

Abstract: Government spending patterns in developing countries have changed dramatically over the last several decades. This paper aims at analysing the relation between government expenditures (GE) and economic growth in Kenya. The study focuses on testing the various versions of Wagner’s hypothesis using Kenya, data from 1967-2012 by an Autoregressive-Distributed Lag (ARDL) model. Overall, we conclude that the Musgrave version is best suited for Kenyan cases since it produced significant long-run and short-run results that were accepted by diagnosis and stability tests. The results rejected Wagner’s hypothesis in Kenya.

Keywords: Wagner s hypothesis; ARDL model; Kenya (search for similar items in EconPapers)
JEL-codes: C22 E12 E62 H50 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://tmp.gtk.uni-miskolc.hu/volumes/2017/02/TMP_2017_02_TMP_2017_2_6.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mic:tmpjrn:v:13:y:2017:i:02:p:45-57

Access Statistics for this article

Theory Methodology Practice (TMP) is currently edited by Zoltan Bartha

More articles in Theory Methodology Practice (TMP) from Faculty of Economics, University of Miskolc Contact information at EDIRC.
Bibliographic data for series maintained by ().