Master of Science in Economics

Faculty / School

Faculty of Business Administration (FBA)


Department of Economics

Date of Submission



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

Project Type

MSECO Research Project

Access Type

Restricted Access


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 or we can say that the percentage share of public-expenditure ascends with the rise in economic growth respectively. For this purpose, ADF test and Cointegration technique has been applied to check out 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 the case of Pakistan and found a long term connection between the variables of economic-growth and the public-expenditure growth.


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