On the Directional Causality Between Government Spending and Economic Growth in Nigeria Using Wagnerian or Keynesian Models.
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Date
2015
Authors
Nwaogwugwu, I.C
Ojapinwa, T.V
Journal Title
Journal ISSN
Volume Title
Publisher
Faculty of Business Administration, University of Lagos.
Abstract
This paper examines the causality between government spending and economic growth along with external reserve in a VAR technique by applying Granger causality/Block Exogeneity approach to Nigerian data for the period 196 1-2011.
Various diagnostic tests for adequacy of the model were performed. This study finds that there is unidirectional causality from government spending to economic growth in Nigeria. This supports the conventional Keynesian framework that causality runs from government spending to economic growth and not from economic growth to government expenditure as posited by the Wagnerian.
Description
Staff Publications
Keywords
Economics , Growth , Causality
Citation
Nwaogwugwu, I.C and Ojapinwa, T.V (2015). On the Directional Causality Between Government Spending and Economic Growth in Nigeria Using Wagnerian or Keynesian Models. Nigerian Journal of Management Studies, Vol.13(1), pp.119-129