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Testing Wagner's Law and Keynesian Hypothesis in Selected Post-Soviet Countries

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  • Jeyhun A. Abbasov

    (Central Bank of Azerbaijan Republic, AZ1014, Rashid Behbudov str. 90, Baku, Azerbaijan
    Azerbaijan State University of Economics, International Graduate and Doctorate Center, AZ1001, Istiqlaliyyat str. 6, Baku, Azerbaijan
    Baku Engineering University, Department of Mathematics and Informatics, AZ0101, Hasan Aliyev str. 120, Khirdalan city, Azerbaijan)

  • Khatai Aliyev

    (Azerbaijan State University of Economics, UNEC Empirical Research Center, AZ1001, Istiqlaliyyat str. 6, Baku, Azerbaijan
    Baku Engineering University, Department of World Economy, AZ0101, Hasan Aliyev str. 120, Khirdalan city, Azerbaijan
    ASERC LLC, AZ1110, Mirali Gashgai str. 97/37, Baku, Azerbaijan)

Abstract

The aim of this research is to test Wagner's law and Keynesian hypothesis in 9 Post-Soviet countries - Estonia, Latvia, Lithuania, Uzbekistan, Azerbaijan, Georgia, Kyrgyz Republic, Moldova, and Ukraine. For this purpose, long- and short-run causality between real per capita GDP and real per capita government expenditures are estimated by employing ARDL modelling approach. Estimation results support validity of Wagner's law for Latvia, Lithuania, Uzbekistan, Georgia, Kyrgyz Republic and Ukraine, and validity of Keynesian hypothesis for Estonia, Uzbekistan, Azerbaijan, Kyrgyz Republic, and Moldova in the long-run. Meanwhile, research findings indicate strong bidirectional short-run causality in all countries except Lithuania and Kyrgyz Republic in the short-run.

Suggested Citation

  • Jeyhun A. Abbasov & Khatai Aliyev, 2018. "Testing Wagner's Law and Keynesian Hypothesis in Selected Post-Soviet Countries," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 66(5), pages 1227-1237.
    • Handle: RePEc:mup:actaun:actaun_2018066051227
    DOI: 10.11118/actaun201866051227
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    Cited by:

    1. Tesařová Žaneta, 2020. "The Wagner’s law testing in the Visegrád Four countries," Review of Economic Perspectives, Sciendo, vol. 20(4), pages 409-430, December.
    2. Selim Demez, 2021. "Validity of Wagner’s Law in EU Member Transition Economies: Panel Causality Analysis," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 8(2), pages 199-210, July.
    3. Awode Segun Subair & Akpa Emeka Okoro, 2018. "Testing Wagner’s Law in Nigeria in the Short and Long-run," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 14(7), pages 7-23, DECEMBER.

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