IDEAS home Printed from https://ideas.repec.org/a/icf/icfjae/v07y2008i4p33-43.html
   My bibliography  Save this article

Wagner s Law in Malaysia: A New Empirical Evidence

Author

Listed:
  • Fumitaka Furuoka

Abstract

Despite the availability of extensive research on Wagner s Law, a systematic empirical testing of the hypothesis in the context of developing countries, especially South-East Asian nations, is still lacking. Thus, the current paper attempts to reduce this gap and chooses Malaysia as a case study to test the existence of Wagner s Law. The Malaysian Government has been playing an increasingly important role in the country s industrialization process as Malaysia is pursuing the target of becoming a fully-industrialized nation by the year 2020. This suggests that Malaysia could be an example of a developing nation where government expenditure grows as the country becomes wealthier. The first to notice such a tendency was a German economist, Adolph Wagner, the author of the so-called Wagner s Law . The most important empirical finding of the present study is that there exists a long-run cointegrating relationship and a short-run but not long-run causality between economic development and government expenditure in Malaysia. This provides an additional empirical evidence to support the existence of Wagner's Law in the context of an Asian developing country, such as Malaysia.

Suggested Citation

  • Fumitaka Furuoka, 2008. "Wagner s Law in Malaysia: A New Empirical Evidence," The IUP Journal of Applied Economics, IUP Publications, vol. 0(4), pages 33-43, July.
  • Handle: RePEc:icf:icfjae:v:07:y:2008:i:4:p:33-43
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tang, Chor-Foon & Lau, Evan, 2011. "The Behaviour of Disaggregated Public Expenditures and Income in Malaysia," Review of Applied Economics, Review of Applied Economics, vol. 7(1-2).

    More about this item

    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:icf:icfjae:v:07:y:2008:i:4:p:33-43. 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: (G R K Murty). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.