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

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Author Info
Judhiana Abd Ghani
Muzafar Shah Habibullah
M Azall
W N W Azman-Saini

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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.

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Publisher Info
Article provided by Icfai Press in its journal The Icfai University Journal of Public Finance.

Volume (Year): III (2005)
Issue (Month): 4 (November)
Pages: 35-42
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Handle: RePEc:icf:icfjpf:v:03:y:2005:i:4:p:35-42

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This page was last updated on 2009-12-2.

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