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The impact of domestic public debt on financial development in Malaysia

When the government heavily borrows domestically from the banking sector to finance its expenditures, there is possibility that public debt will lead to a crowding out effect on private investment since bank credit is a primary funding source for the private sector. This study examines the linkages...

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Main Authors: Mok, Wei Mun, Ismail, Normaz Wana
Format: Article
Language:English
Published: Macrothink Institute 2015
Online Access:http://psasir.upm.edu.my/id/eprint/46602/1/The%20impact%20of%20domestic%20public%20debt%20on%20financial%20development%20in%20Malaysia.pdf
http://psasir.upm.edu.my/id/eprint/46602/
http://www.macrothink.org/journal/index.php/ijssr/index
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spelling my.upm.eprints.466022018-02-26T00:35:51Z http://psasir.upm.edu.my/id/eprint/46602/ The impact of domestic public debt on financial development in Malaysia Mok, Wei Mun Ismail, Normaz Wana When the government heavily borrows domestically from the banking sector to finance its expenditures, there is possibility that public debt will lead to a crowding out effect on private investment since bank credit is a primary funding source for the private sector. This study examines the linkages between domestic public debt and financial development in Malaysia for the period of 1980 to 2010. Our analysis suggests that domestic public debt from banks has a negative relationship with financial development. Meanwhile, the crowding out effect is evident during the occurrence of financial crises. Macrothink Institute 2015 Article NonPeerReviewed text en http://psasir.upm.edu.my/id/eprint/46602/1/The%20impact%20of%20domestic%20public%20debt%20on%20financial%20development%20in%20Malaysia.pdf Mok, Wei Mun and Ismail, Normaz Wana (2015) The impact of domestic public debt on financial development in Malaysia. International Journal of Social Science Research, 3 (2). pp. 1-19. ISSN 2327-5510 http://www.macrothink.org/journal/index.php/ijssr/index 10.5296/ijssr.v3i2.7167
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description When the government heavily borrows domestically from the banking sector to finance its expenditures, there is possibility that public debt will lead to a crowding out effect on private investment since bank credit is a primary funding source for the private sector. This study examines the linkages between domestic public debt and financial development in Malaysia for the period of 1980 to 2010. Our analysis suggests that domestic public debt from banks has a negative relationship with financial development. Meanwhile, the crowding out effect is evident during the occurrence of financial crises.
format Article
author Mok, Wei Mun
Ismail, Normaz Wana
spellingShingle Mok, Wei Mun
Ismail, Normaz Wana
The impact of domestic public debt on financial development in Malaysia
author_facet Mok, Wei Mun
Ismail, Normaz Wana
author_sort Mok, Wei Mun
title The impact of domestic public debt on financial development in Malaysia
title_short The impact of domestic public debt on financial development in Malaysia
title_full The impact of domestic public debt on financial development in Malaysia
title_fullStr The impact of domestic public debt on financial development in Malaysia
title_full_unstemmed The impact of domestic public debt on financial development in Malaysia
title_sort impact of domestic public debt on financial development in malaysia
publisher Macrothink Institute
publishDate 2015
url http://psasir.upm.edu.my/id/eprint/46602/1/The%20impact%20of%20domestic%20public%20debt%20on%20financial%20development%20in%20Malaysia.pdf
http://psasir.upm.edu.my/id/eprint/46602/
http://www.macrothink.org/journal/index.php/ijssr/index
_version_ 1643833796545478656
score 13.211869

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