The behavior of external debt in Asian countries: evidence based on panel unit root test
This article investigates the mean-reverting behavior of the external debt ratio based on a clustered of 19 Asian countries from 1981 to 2010. For this purpose, we use a government’s intertemporal budget constraint (GIBC) model popularized by Hamilton and Flavin (1986). Our conclusions were drawn f...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis
2013
|
| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/15722/ http://ir.unimas.my/id/eprint/15722/1/The%20behavior%20of%20external%20debt%20in%20%28abstrak%29.pdf |
| _version_ | 1848837912304549888 |
|---|---|
| author | Evan, Lau Ahmad Zubaidi, Baharumshah Siew-Voon, Soon |
| author_facet | Evan, Lau Ahmad Zubaidi, Baharumshah Siew-Voon, Soon |
| author_sort | Evan, Lau |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | This article investigates the mean-reverting behavior of the external debt ratio based on a clustered of 19 Asian countries from 1981 to 2010. For this purpose, we use
a government’s intertemporal budget constraint (GIBC) model popularized by Hamilton and Flavin (1986). Our conclusions were drawn from panel data based tests, including the newly developed test that accounts for both cross-sectional dependency and structural breaks. Two major findings are noteworthy; first majority debt ratios in the Asian countries are affected by structural breaks. Second, we find unit root tests that do not accommodate
breaks are less likely to detect mean reversion in the debt ratios. In all, our results indicate debt sustainability is a general characteristic of all the Asian countries. |
| first_indexed | 2025-11-15T06:47:12Z |
| format | Article |
| id | unimas-15722 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:47:12Z |
| publishDate | 2013 |
| publisher | Taylor & Francis |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-157222023-08-07T02:08:08Z http://ir.unimas.my/id/eprint/15722/ The behavior of external debt in Asian countries: evidence based on panel unit root test Evan, Lau Ahmad Zubaidi, Baharumshah Siew-Voon, Soon H Social Sciences (General) HG Finance This article investigates the mean-reverting behavior of the external debt ratio based on a clustered of 19 Asian countries from 1981 to 2010. For this purpose, we use a government’s intertemporal budget constraint (GIBC) model popularized by Hamilton and Flavin (1986). Our conclusions were drawn from panel data based tests, including the newly developed test that accounts for both cross-sectional dependency and structural breaks. Two major findings are noteworthy; first majority debt ratios in the Asian countries are affected by structural breaks. Second, we find unit root tests that do not accommodate breaks are less likely to detect mean reversion in the debt ratios. In all, our results indicate debt sustainability is a general characteristic of all the Asian countries. Taylor & Francis 2013 Article PeerReviewed text en http://ir.unimas.my/id/eprint/15722/1/The%20behavior%20of%20external%20debt%20in%20%28abstrak%29.pdf Evan, Lau and Ahmad Zubaidi, Baharumshah and Siew-Voon, Soon (2013) The behavior of external debt in Asian countries: evidence based on panel unit root test. Journal of Business Economics and Management, 14 (1). pp. 5377-5394. ISSN 2029-4433 http://www.tandfonline.com/doi/abs/10.3846/16111699.2012.720589?src=recsys doi:10.3846/16111699.2012.720589 |
| spellingShingle | H Social Sciences (General) HG Finance Evan, Lau Ahmad Zubaidi, Baharumshah Siew-Voon, Soon The behavior of external debt in Asian countries: evidence based on panel unit root test |
| title | The behavior of external debt in Asian countries: evidence based on panel unit root test |
| title_full | The behavior of external debt in Asian countries: evidence based on panel unit root test |
| title_fullStr | The behavior of external debt in Asian countries: evidence based on panel unit root test |
| title_full_unstemmed | The behavior of external debt in Asian countries: evidence based on panel unit root test |
| title_short | The behavior of external debt in Asian countries: evidence based on panel unit root test |
| title_sort | behavior of external debt in asian countries: evidence based on panel unit root test |
| topic | H Social Sciences (General) HG Finance |
| url | http://ir.unimas.my/id/eprint/15722/ http://ir.unimas.my/id/eprint/15722/ http://ir.unimas.my/id/eprint/15722/ http://ir.unimas.my/id/eprint/15722/1/The%20behavior%20of%20external%20debt%20in%20%28abstrak%29.pdf |