Does Debts Foster Economic Growth?: The Experience of Malaysia
The study examines the effect of different types of debts on the economic growth in Malaysia during the sample period 1970 - 2006. Using cointegration test, the findings suggest that all components of debts have a negative effect on long-run economic growth. In addition, the Granger causality test r...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Academic Journals
2010
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/7185/ http://ir.unimas.my/id/eprint/7185/1/Does%20debts%20foster%20economic%20growth%20The%20experience%20of%20Malaysia%2810%25%29.pdf |
| _version_ | 1848836074829250560 |
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| author | Lau, Evan Choong, Chee-Keong Liew, VK Puah, Chin-Hong |
| author_facet | Lau, Evan Choong, Chee-Keong Liew, VK Puah, Chin-Hong |
| author_sort | Lau, Evan |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | The study examines the effect of different types of debts on the economic growth in Malaysia during the sample period 1970 - 2006. Using cointegration test, the findings suggest that all components of debts have a negative effect on long-run economic growth. In addition, the Granger causality test reveals the existence of a short-run causality linkage between all debt measures and economic growth in the shortrun. The policy conclusion is that an increase in foreign debt level adversely influences economic performance, whereas the decline in the rate of economic growth weakens the ability of the country to service its debt. |
| first_indexed | 2025-11-15T06:17:59Z |
| format | Article |
| id | unimas-7185 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:17:59Z |
| publishDate | 2010 |
| publisher | Academic Journals |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-71852016-04-14T00:57:47Z http://ir.unimas.my/id/eprint/7185/ Does Debts Foster Economic Growth?: The Experience of Malaysia Lau, Evan Choong, Chee-Keong Liew, VK Puah, Chin-Hong HC Economic History and Conditions The study examines the effect of different types of debts on the economic growth in Malaysia during the sample period 1970 - 2006. Using cointegration test, the findings suggest that all components of debts have a negative effect on long-run economic growth. In addition, the Granger causality test reveals the existence of a short-run causality linkage between all debt measures and economic growth in the shortrun. The policy conclusion is that an increase in foreign debt level adversely influences economic performance, whereas the decline in the rate of economic growth weakens the ability of the country to service its debt. Academic Journals 2010 Article PeerReviewed text en http://ir.unimas.my/id/eprint/7185/1/Does%20debts%20foster%20economic%20growth%20The%20experience%20of%20Malaysia%2810%25%29.pdf Lau, Evan and Choong, Chee-Keong and Liew, VK and Puah, Chin-Hong (2010) Does Debts Foster Economic Growth?: The Experience of Malaysia. African Journal of Business Management, 4 (8). pp. 1564-1575. ISSN 1993-8233 http://www.researchgate.net/profile/Evan_Lau/publication/228864761_Does_debts_foster_economic_growth_The_experience_of_Malaysia/links/0fcfd50a309b5e1680000000.pdf |
| spellingShingle | HC Economic History and Conditions Lau, Evan Choong, Chee-Keong Liew, VK Puah, Chin-Hong Does Debts Foster Economic Growth?: The Experience of Malaysia |
| title | Does Debts Foster Economic Growth?: The Experience of Malaysia |
| title_full | Does Debts Foster Economic Growth?: The Experience of Malaysia |
| title_fullStr | Does Debts Foster Economic Growth?: The Experience of Malaysia |
| title_full_unstemmed | Does Debts Foster Economic Growth?: The Experience of Malaysia |
| title_short | Does Debts Foster Economic Growth?: The Experience of Malaysia |
| title_sort | does debts foster economic growth?: the experience of malaysia |
| topic | HC Economic History and Conditions |
| url | http://ir.unimas.my/id/eprint/7185/ http://ir.unimas.my/id/eprint/7185/ http://ir.unimas.my/id/eprint/7185/1/Does%20debts%20foster%20economic%20growth%20The%20experience%20of%20Malaysia%2810%25%29.pdf |