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Federal government debt and economic growth: Evidence from Malaysia

Author

Listed:
  • Siti Nurazira Mohd Daud

    (Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia Negeri Sembilan, Malaysia)

  • Jan M. Podivinsky

    (Division of Economics, University of Southampton, Southampton, UK)

Abstract

This article conducts an investigation into the effect of federal government debt on Malaysia’s economic growth with the application of threshold regression. The result reveals that, beyond the government debt threshold level, the country is experiencing a positive effect on economic growth.

Suggested Citation

  • Siti Nurazira Mohd Daud & Jan M. Podivinsky, 2015. "Federal government debt and economic growth: Evidence from Malaysia," Progress in Development Studies, , vol. 15(3), pages 253-256, July.
    • Handle: RePEc:sae:prodev:v:15:y:2015:i:3:p:253-256
    DOI: 10.1177/1464993415578980
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    References listed on IDEAS

    as
    1. Checherita-Westphal, Cristina & Rother, Philipp, 2010. "The impact of high and growing government debt on economic growth: an empirical investigation for the euro area," Working Paper Series 1237, European Central Bank.
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    5. Caner, Mehmet & Grennes,Thomas & Koehler-Geib, Fritzi, 2010. "Finding the tipping point -- when sovereign debt turns bad," Policy Research Working Paper Series 5391, The World Bank.
    6. Bruce E. Hansen, 2000. "Sample Splitting and Threshold Estimation," Econometrica, Econometric Society, vol. 68(3), pages 575-604, May.
    7. Andrea F Presbitero, 2012. "Total Public Debt and Growth in Developing Countries," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 24(4), pages 606-626, September.
    8. Ms. Hélène Poirson & Mr. Luca A Ricci & Ms. Catherine A Pattillo, 2004. "What Are the Channels Through Which External Debt Affects Growth?," IMF Working Papers 2004/015, International Monetary Fund.
    9. Schclarek, Alfredo, 2004. "Debt and Economic Growth in Developing and Industrial Countries," Working Papers 2005:34, Lund University, Department of Economics.
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