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Testing Wagner’s Law in an Oil-Exporting Economy: the Case of Azerbaijan

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  • Samad Bashirli
  • Ilkin Sabiroglu

    ()

Abstract

This paper investigates the relationship between public expenditure and economic growth in Azerbaijan, including impact of oil prices. Applying time series econometrics, such as unit roots and bounds testing approaches, and autoregressive distributed lag techniques the analysis in this study is based on quarterly data during the period from 2001 to 2010. The results of the research support the validity of Wagner’s hypothesis in the oil-exporting economy and the existence of both long and short run causality among the cointegrated variables. Copyright CEEUN 2013

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Bibliographic Info

Article provided by Springer in its journal Transition Studies Review.

Volume (Year): 20 (2013)
Issue (Month): 3 (November)
Pages: 295-307

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Handle: RePEc:spr:trstrv:v:20:y:2013:i:3:p:295-307

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Related research

Keywords: Wagner’s law; Oil prices; Bounds test; Causality test; Azerbaijan; C22; E12; E62; H50; O23;

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References

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  1. Ilkin Sabiroglu & Samad Bashirli & Faiq Qasimli, 2011. "Creating a Favourable Deployment Mechanism of Oil and Gas Revenues with Regard to Volatile Oil Prices: The Case of Azerbaijan," Transition Studies Review, Springer, Springer, vol. 18(1), pages 179-199, September.
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