IDEAS home Printed from https://ideas.repec.org/a/eaa/aeinde/v9y2009i2_16.html
   My bibliography  Save this article

Wagner’S Law And Social Welfare: The Case Of The Kingdom Of Saudi Arabia

Author

Listed:
  • Albert WIJEWEERA
  • Dalton GARIS

Abstract

This paper uses data from the Kingdom of Saudi Arabia (KSA) to empirically test Wagner's Law in explaining public expenditure growth in association with economic growth; and if this growth enhanced the public welfare. The Kingdom of Saudi Arabia (KSA) has witnessed a marked increase in government expenditure. We use the Engle and Granger (E-G) two-step cointegration method to examine the relationship between government expenditure and economic growth. Out of the four model specifications that we have tested, two models indicate that a positive long run relationship exists between government expenditure and economic growth. However, the income elasticities are not large enough to suggest that the growth in government expenditure exceeds the growth in national income; only that upward pressure is exerted. Looking at available data it is clear that governmental expenditures from GDP expansions increased public welfare for Saudis over the test period.

Suggested Citation

  • Albert WIJEWEERA & Dalton GARIS, 2009. "Wagner’S Law And Social Welfare: The Case Of The Kingdom Of Saudi Arabia," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 9(2).
  • Handle: RePEc:eaa:aeinde:v:9:y:2009:i:2_16
    as

    Download full text from publisher

    File URL: http://www.usc.es/economet/journals1/aeid/aeid9216.pdf
    Download Restriction: Access restricted to subscribers. Free on line subscription for universities from low income countries. More information at http://www.usc.es/economet/info.htm

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. A. F. Al-Faris, 2002. "Public expenditure and economic growth in the Gulf Cooperation Council countries," Applied Economics, Taylor & Francis Journals, vol. 34(9), pages 1187-1193.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eaa:aeinde:v:9:y:2009:i:2_16. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (M. Carmen Guisan). General contact details of provider: http://www.usc.es/economet/eaa.htm .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.