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Modeling Malaysia Debt Threshold : Debt Composition Perspective

This study intends to examine the effect of the debt on economic growth of Malaysia from the perspective of domestic debt and external debt. Furthermore, the impact of different type of debts on growth upon either above or below certain threshold level of the debt also investigated using Threshold...

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Main Authors: Venus, Khim-Sen Liew, Jerome, Kueh, Yong, Sze Wei
Format: Article
Language:English
Published: International Journal of Business and Society (IJBS) 2017
Subjects:
HG Finance
Online Access:http://ir.unimas.my/id/eprint/29578/1/Jerome.pdf
http://ir.unimas.my/id/eprint/29578/
http://www.ijbs.unimas.my/
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spelling my.unimas.ir.295782021-06-01T12:11:17Z http://ir.unimas.my/id/eprint/29578/ Modeling Malaysia Debt Threshold : Debt Composition Perspective Venus, Khim-Sen Liew Jerome, Kueh Yong, Sze Wei HG Finance This study intends to examine the effect of the debt on economic growth of Malaysia from the perspective of domestic debt and external debt. Furthermore, the impact of different type of debts on growth upon either above or below certain threshold level of the debt also investigated using Threshold regression method for sample period 1980-2015. Empirical findings indicate that the threshold level for domestic debt is approximately 37% of GDP while 4% of GDP for external debt. Initial domestic debt accumulation contributes positively to the economic growth of Malaysia when the domestic debt level is below the threshold level but becomes detrimental to economic growth when the debt level exceeds the threshold level. On the other hand, external debt has negative impact on the economic growth when the debt is below the external debt threshold and become positive when exceed the threshold level. In terms of policy recommendation, government has an uphill task in managing the debt at optimal level as different type of debts and levels of debt may have different impact on the economic growth. International Journal of Business and Society (IJBS) 2017 Article PeerReviewed text en http://ir.unimas.my/id/eprint/29578/1/Jerome.pdf Venus, Khim-Sen Liew and Jerome, Kueh and Yong, Sze Wei (2017) Modeling Malaysia Debt Threshold : Debt Composition Perspective. International Journal of Business and Society, 18 (S4). pp. 800-807. ISSN 1511-6670 http://www.ijbs.unimas.my/
institution Universiti Malaysia Sarawak
building Centre for Academic Information Services (CAIS)
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sarawak
content_source UNIMAS Institutional Repository
url_provider http://ir.unimas.my/
language English
topic HG Finance
spellingShingle HG Finance
Venus, Khim-Sen Liew
Jerome, Kueh
Yong, Sze Wei
Modeling Malaysia Debt Threshold : Debt Composition Perspective
description This study intends to examine the effect of the debt on economic growth of Malaysia from the perspective of domestic debt and external debt. Furthermore, the impact of different type of debts on growth upon either above or below certain threshold level of the debt also investigated using Threshold regression method for sample period 1980-2015. Empirical findings indicate that the threshold level for domestic debt is approximately 37% of GDP while 4% of GDP for external debt. Initial domestic debt accumulation contributes positively to the economic growth of Malaysia when the domestic debt level is below the threshold level but becomes detrimental to economic growth when the debt level exceeds the threshold level. On the other hand, external debt has negative impact on the economic growth when the debt is below the external debt threshold and become positive when exceed the threshold level. In terms of policy recommendation, government has an uphill task in managing the debt at optimal level as different type of debts and levels of debt may have different impact on the economic growth.
format Article
author Venus, Khim-Sen Liew
Jerome, Kueh
Yong, Sze Wei
author_facet Venus, Khim-Sen Liew
Jerome, Kueh
Yong, Sze Wei
author_sort Venus, Khim-Sen Liew
title Modeling Malaysia Debt Threshold : Debt Composition Perspective
title_short Modeling Malaysia Debt Threshold : Debt Composition Perspective
title_full Modeling Malaysia Debt Threshold : Debt Composition Perspective
title_fullStr Modeling Malaysia Debt Threshold : Debt Composition Perspective
title_full_unstemmed Modeling Malaysia Debt Threshold : Debt Composition Perspective
title_sort modeling malaysia debt threshold : debt composition perspective
publisher International Journal of Business and Society (IJBS)
publishDate 2017
url http://ir.unimas.my/id/eprint/29578/1/Jerome.pdf
http://ir.unimas.my/id/eprint/29578/
http://www.ijbs.unimas.my/
_version_ 1702173262723678208
score 13.211869

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