Transition Studies Review

, Volume 20, Issue 3, pp 295–307 | Cite as

Testing Wagner’s Law in an Oil-Exporting Economy: the Case of Azerbaijan

  • Samad Bashirli
  • Ilkin M. SabirogluEmail author
Eurasian Studies


This paper investigates the relationship between public expenditure and economic growth in Azerbaijan, including impact of oil prices. Applying time series econometrics, such as unit roots and bounds testing approaches, and autoregressive distributed lag techniques the analysis in this study is based on quarterly data during the period from 2001 to 2010. The results of the research support the validity of Wagner’s hypothesis in the oil-exporting economy and the existence of both long and short run causality among the cointegrated variables.


Wagner’s law Oil prices Bounds test Causality test Azerbaijan 

JEL Classification

C22 E12 E62 H50 O23 


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Copyright information

© CEEUN 2013

Authors and Affiliations

  1. 1.Strategic Planning DepartmentMinistry of Economic DevelopmentBakuAzerbaijan
  2. 2.Faculty of Economics and Administrative SciencesQafqaz UniversityBakuAzerbaijan

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