Does external debt contribute to Malaysia economic growth?
This paper analyzes the contribution of external debt to Malaysia’s economic growth. To investigate whether the external debt has contributed to the economic growth in the long run, the growth model is tested by applying the Autoregressive Distributed Lag (ARDL) bound test. In addition, the exi...
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| Main Authors: | , , |
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| Format: | Article |
| Published: |
Juraj Dobrila University of Pula
2013
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| Online Access: | http://psasir.upm.edu.my/id/eprint/30833/ http://hrcak.srce.hr/index.php?show=clanak&id_clanak_jezik=152934 |
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| Institution: | Universiti Putra Malaysia |
| Summary: | This paper analyzes the contribution of external debt
to Malaysia’s economic growth. To investigate
whether the external debt has contributed to the
economic growth in the long run, the growth model
is tested by applying the Autoregressive Distributed
Lag (ARDL) bound test. In addition, the existence of
the threshold effect is examined to estimate the
optimal level of external debt. The empirical results
reveal that the accumulation of external debt is
associated with an increase in Malaysia’s economic
growth up to an optimal level, and an additional
increase of external indebtedness beyond the level
has inversely contributed to the Malaysian economy. |
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