All Theses and Dissertations


Master of Science in Economics


Department of Economics

Date of Award

Fall 2017


Dr. Qazi Masood Ahmed

Committee Member 1

Dr. Qazi Masood Ahmed, Institute of Business Administration, Karachi

Project Type


Access Type

Restricted Access

Document Version



ix, 14




The subject study endeavors to observe the Law of Wagner with all six versions in Pakistan covering the period from 1981 till 2016. Law of Wagner describes the connection between economic-growth and expenditure of government i.e. the rise in general public expenses is a natural upshot for the increase in economic growth respectively. For this purpose, ADF test and co-integration technique has been applied to checkout the long run connection among the variables. In addition, ECM is also applied to find any short run relationship and to see whether the variables converges towards the equilibrium or diverges. Other than the possible reasons for the increase in government expenditure and Law of Wagner validity particularly in the perspective of developing countries. Conclusion emerges from the empirical results also supports the validity of Law of Wagner in case of Pakistan and found a long term connection between the variables of economic-growth and the public expenditure growth.

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