A test of Wagner’s hypothesis for the Ghanaian economy

The economy of Ghana profiles a trajectory of increasing government expenditure at the backdrop of an inconsistent growth in real GDP. Thus, this study explores the causal relationship between real economic growth and real government expenditure in Ghana between the period 1960 to 2017. The Johansen...

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Autores principales:	John Gartchie Gatsi, Michael Owusu Appiah, Joseph Addo Gyan
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2019
Materias:	wagner’s hypothesis economic growth cointegration granger causality autoregressive distributed lag model ghana Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/e2b56fb7bc444aaa8e4a53e84bf84f36
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spelling	oai:doaj.org-article:e2b56fb7bc444aaa8e4a53e84bf84f362021-12-02T16:07:28ZA test of Wagner’s hypothesis for the Ghanaian economy2331-197510.1080/23311975.2019.1647773https://doaj.org/article/e2b56fb7bc444aaa8e4a53e84bf84f362019-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2019.1647773https://doaj.org/toc/2331-1975The economy of Ghana profiles a trajectory of increasing government expenditure at the backdrop of an inconsistent growth in real GDP. Thus, this study explores the causal relationship between real economic growth and real government expenditure in Ghana between the period 1960 to 2017. The Johansen (1991, 1995) cointegration method, the Autoregressive Distributed Lag bounds test approach and the Toda-Yamamoto non-Granger causality test are employed in this study. The findings are that the variables are cointegrated, and there is no Granger causality from real economic growth to real government expenditure. In effect, the causality shows that the Wagner’s hypothesis does not hold in the case of the Ghanaian economy and that the Keynesian theoretical standpoint that public expenditure is an exogenous factor is not deflated in this case.John Gartchie GatsiMichael Owusu AppiahJoseph Addo GyanTaylor & Francis Grouparticlewagner’s hypothesiseconomic growthcointegrationgranger causalityautoregressive distributed lag modelghanaBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 6, Iss 1 (2019)
institution	DOAJ
collection	DOAJ
language	EN
topic	wagner’s hypothesis economic growth cointegration granger causality autoregressive distributed lag model ghana Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	wagner’s hypothesis economic growth cointegration granger causality autoregressive distributed lag model ghana Business HF5001-6182 Management. Industrial management HD28-70 John Gartchie Gatsi Michael Owusu Appiah Joseph Addo Gyan A test of Wagner’s hypothesis for the Ghanaian economy
description	The economy of Ghana profiles a trajectory of increasing government expenditure at the backdrop of an inconsistent growth in real GDP. Thus, this study explores the causal relationship between real economic growth and real government expenditure in Ghana between the period 1960 to 2017. The Johansen (1991, 1995) cointegration method, the Autoregressive Distributed Lag bounds test approach and the Toda-Yamamoto non-Granger causality test are employed in this study. The findings are that the variables are cointegrated, and there is no Granger causality from real economic growth to real government expenditure. In effect, the causality shows that the Wagner’s hypothesis does not hold in the case of the Ghanaian economy and that the Keynesian theoretical standpoint that public expenditure is an exogenous factor is not deflated in this case.
format	article
author	John Gartchie Gatsi Michael Owusu Appiah Joseph Addo Gyan
author_facet	John Gartchie Gatsi Michael Owusu Appiah Joseph Addo Gyan
author_sort	John Gartchie Gatsi
title	A test of Wagner’s hypothesis for the Ghanaian economy
title_short	A test of Wagner’s hypothesis for the Ghanaian economy
title_full	A test of Wagner’s hypothesis for the Ghanaian economy
title_fullStr	A test of Wagner’s hypothesis for the Ghanaian economy
title_full_unstemmed	A test of Wagner’s hypothesis for the Ghanaian economy
title_sort	test of wagner’s hypothesis for the ghanaian economy
publisher	Taylor & Francis Group
publishDate	2019
url	https://doaj.org/article/e2b56fb7bc444aaa8e4a53e84bf84f36
work_keys_str_mv	AT johngartchiegatsi atestofwagnershypothesisfortheghanaianeconomy AT michaelowusuappiah atestofwagnershypothesisfortheghanaianeconomy AT josephaddogyan atestofwagnershypothesisfortheghanaianeconomy AT johngartchiegatsi testofwagnershypothesisfortheghanaianeconomy AT michaelowusuappiah testofwagnershypothesisfortheghanaianeconomy AT josephaddogyan testofwagnershypothesisfortheghanaianeconomy
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A test of Wagner’s hypothesis for the Ghanaian economy

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