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Empirical evaluation on external debt of Malaysia


Abu Bakar, Nor'Aznin and Hassan, Sallahuddin (2008) Empirical evaluation on external debt of Malaysia. International Business & Economics Research Journal, 7 (2). pp. 95-108. ISSN 1535-0754

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Abstract

This study analyzes the effects of external debts on economic growth in Malaysia. The analysis is conducted both at aggregate and disaggregate levels. The empirical results are based on VAR estimates using GDP, external debts, capital accumulation, labor force and human capital. Estimation results at the aggregate level indicate that total external debts affect economic growth positively. In particular, one percentage point increase in total external debts generates 1.29 percentage point of economic growth in the long term. Meanwhile, the positive effects of project loan has been detected at the disaggregate level. However, market loan has not shown any significant effect on economic growth. In the short-run, total external debts as well as project loan has positive effects on economic growth

Item Type: Article
Uncontrolled Keywords: Debt, economic growth, time-series model
Subjects: H Social Sciences > HJ Public Finance
Divisions: College of Arts and Sciences
Depositing User: Prof. Madya Dr. Nor Aznin Abu Bakar
Date Deposited: 28 Nov 2010 08:18
Last Modified: 28 Nov 2010 08:18
URI: http://repo.uum.edu.my/id/eprint/1594

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