Estimation of Malaysia Public Debt Threshold

The objective of this study is to examine the implication of the public debt on the economic growth of Malaysia from the perspective of different public debt levels threshold. Threshold Regression method is utilized to identify the public debt threshold from 1991:Q1-2014:Q4 and examine the hetero...

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Main Authors: Kueh, Jerome, Liew, Venus Khim-Sen, Yong, Sze-Wei, Abdullah, Muhammad Asraf
Other Authors: Ee, Shiang Lim
Format: Book Section
Language:English
Published: Universiti Sains Malaysia 2016
Subjects:
Online Access:http://eprints.usm.my/53681/
http://eprints.usm.my/53681/1/pages%20from%2017%20-%2023%20iccei2016-proceedings.pdf
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author Kueh, Jerome
Liew, Venus Khim-Sen
Yong, Sze-Wei
Abdullah, Muhammad Asraf
author2 Ee, Shiang Lim
author_facet Ee, Shiang Lim
Kueh, Jerome
Liew, Venus Khim-Sen
Yong, Sze-Wei
Abdullah, Muhammad Asraf
author_sort Kueh, Jerome
building USM Institutional Repository
collection Online Access
description The objective of this study is to examine the implication of the public debt on the economic growth of Malaysia from the perspective of different public debt levels threshold. Threshold Regression method is utilized to identify the public debt threshold from 1991:Q1-2014:Q4 and examine the heterogeneous impacts of the public debt on growth based on certain threshold levels. Empirical results indicate that there is a positive association between the public debt and economic growth when the public debt is below 41% of GDP threshold level. Furthermore, there is a marginal positive impact when the public debt level falls between 41%-53% of GDP threshold levels. However, there is a harmful impact on growth when public debt is above 53% of GDP threshold level. As a result, managing the public debt position and the quality of the debt are important to ensure sustainable economic growth.
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language English
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spelling usm-536812022-07-28T06:57:26Z http://eprints.usm.my/53681/ Estimation of Malaysia Public Debt Threshold Kueh, Jerome Liew, Venus Khim-Sen Yong, Sze-Wei Abdullah, Muhammad Asraf H1-99 Social sciences (General) The objective of this study is to examine the implication of the public debt on the economic growth of Malaysia from the perspective of different public debt levels threshold. Threshold Regression method is utilized to identify the public debt threshold from 1991:Q1-2014:Q4 and examine the heterogeneous impacts of the public debt on growth based on certain threshold levels. Empirical results indicate that there is a positive association between the public debt and economic growth when the public debt is below 41% of GDP threshold level. Furthermore, there is a marginal positive impact when the public debt level falls between 41%-53% of GDP threshold levels. However, there is a harmful impact on growth when public debt is above 53% of GDP threshold level. As a result, managing the public debt position and the quality of the debt are important to ensure sustainable economic growth. Universiti Sains Malaysia Ee, Shiang Lim Chee, Hong Law Hooi, Hooi Lean 2016 Book Section PeerReviewed application/pdf en http://eprints.usm.my/53681/1/pages%20from%2017%20-%2023%20iccei2016-proceedings.pdf Kueh, Jerome and Liew, Venus Khim-Sen and Yong, Sze-Wei and Abdullah, Muhammad Asraf (2016) Estimation of Malaysia Public Debt Threshold. In: Proceedings of Second International Conference on Contemporary Economic Issues. Universiti Sains Malaysia, Bali, Indonesia, pp. 17-23. ISBN 978-967-11473-6-8
spellingShingle H1-99 Social sciences (General)
Kueh, Jerome
Liew, Venus Khim-Sen
Yong, Sze-Wei
Abdullah, Muhammad Asraf
Estimation of Malaysia Public Debt Threshold
title Estimation of Malaysia Public Debt Threshold
title_full Estimation of Malaysia Public Debt Threshold
title_fullStr Estimation of Malaysia Public Debt Threshold
title_full_unstemmed Estimation of Malaysia Public Debt Threshold
title_short Estimation of Malaysia Public Debt Threshold
title_sort estimation of malaysia public debt threshold
topic H1-99 Social sciences (General)
url http://eprints.usm.my/53681/
http://eprints.usm.my/53681/1/pages%20from%2017%20-%2023%20iccei2016-proceedings.pdf