Open Access Journal Article

Public spending and economic growth in Ivory Coast: Wagner’s law

by Siriki Coulibaly a, b,* orcid  and  Pierre Guei a, b orcid
a
Department of Economics, Université Péléforo Gon Coulibaly, Korhogo, Côte d'Ivoire
b
DEECAF, Rennes, France
*
Author to whom correspondence should be addressed.
EAL  2022, 7; 1(2), 7; https://doi.org/10.58567/eal01020002
Received: 7 December 2022 / Accepted: 13 December 2022 / Published Online: 28 December 2022
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Abstract

This study simultaneously tests Wagner’s law on one hand and Keynes proposition on the other hand related both government spending and output in Ivory Coast that experiencing long run economic growth and widened deficit. That challenges the country’s fiscal sustainability. With annual data from 1980 to 2020, results show that Wagner’s law holds, the elasticity of government spending to output is greater than one. There is bidirectional causality between government size and output validating Keynesian idea that public expenditure is an exogenous factor and a policy instrument for increasing national income. Wagner law and public deficit can justify Ivorian over-indebtedness.

Keywords: Government spending, GDP growth, Wagner law, Causality;
Copyright: © 2022 by Coulibaly and Guei. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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ACS Style
Coulibaly, S.; Guei, P. Public spending and economic growth in Ivory Coast: Wagner’s law. Economic Analysis Letters, 2022, 1, 7. https://doi.org/10.58567/eal01020002
AMA Style
Coulibaly S, Guei P. Public spending and economic growth in Ivory Coast: Wagner’s law. Economic Analysis Letters; 2022, 1(2):7. https://doi.org/10.58567/eal01020002
Chicago/Turabian Style
Coulibaly, Siriki; Guei, Pierre 2022. "Public spending and economic growth in Ivory Coast: Wagner’s law" Economic Analysis Letters 1, no.2:7. https://doi.org/10.58567/eal01020002
APA style
Coulibaly, S., & Guei, P. (2022). Public spending and economic growth in Ivory Coast: Wagner’s law. Economic Analysis Letters, 1(2), 7. https://doi.org/10.58567/eal01020002

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