Affiliation:
1. Kütahya Dumlupınar Üniversitesi
Abstract
Determining the direction of the relationship between public expenditures and economic growth has been among the issues that have been discussed for many years. In the paper, the relationship between public expenditures and economic growth was investigated within the scope of Wagner's Law and Keynes Theory, using annual data for the period of 1995-2019 for EU countries. For this purpose, Westerlund (2008) Durbin-Hausman cointegration test and Dumitrescu-Hurlin (2012) panel causality test were applied to test the related theories. According to the findings, it has been concluded that the Wagner Law is generally valid in EU countries.
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