IDEAS home Printed from https://ideas.repec.org/p/sek/iacpro/2503254.html
   My bibliography  Save this paper

External Debt And Economic Growth Nexus: Evidence From Malaysia, Thailand And Philippines

Author

Listed:
  • Evan Lau

    (Universiti Malaysia Sarawak)

  • Alvina Syn-Yee Lee

    (Universiti Malaysia Sarawak)

  • Ahmad Zubaidi Baharumshah

    (Universiti Putra Malaysia)

Abstract

This study aims to examine the contribution of external debt to economic growth in three countries namely; Malaysia, Thailand and the Philippines. To discern the causal chain linkages among the I(1) macroeconomic variables typically utilized to test the connection between external debt and economic growth, several econometric procedures are employed in this study. By employing the cointegration test, the results reveal the existence of one unique long-run relationship among the variables for Malaysia while two cointegrating vectors are identified for both Thailand and the Philippines. From the results, it is evident that both the growth-driven exports and export-led growth hypothesis exist in Malaysia and Thailand respectively. The dynamic econometric analysis finds that exports of goods and services appear to be the most leading variable beyond the sample for the next 50 years. The findings from the study recommend the policy makers should formulate effective debt management policies to monitor the amount of external borrowings so that the accumulation of external debt will not hinder the economic growth.

Suggested Citation

  • Evan Lau & Alvina Syn-Yee Lee & Ahmad Zubaidi Baharumshah, 2015. "External Debt And Economic Growth Nexus: Evidence From Malaysia, Thailand And Philippines," Proceedings of International Academic Conferences 2503254, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:2503254
    as

    Download full text from publisher

    File URL: https://iises.net/proceedings/16th-international-academic-conference-amsterdam/table-of-content/detail?cid=25&iid=042&rid=3254
    File Function: First version, 2015
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bakari, Sayef & Khalfallah, Sirine & Zidi, Ahmed, 2021. "The Determinants of Agricultural Exports: Empirical Validation for the Case of Tunisia," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 9(3), October.
    2. Nasim Masoudi & Nazar Dahmarde & Marziye Esfandiyari, 2017. "Exploring the Relationship between Globalization and Economic Growth in Selected Countries of Middle East," International Journal of Economics and Financial Issues, Econjournals, vol. 7(5), pages 338-344.

    More about this item

    Keywords

    External Debt; Economic Growth; Malaysia; Thailand; Philippines.;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sek:iacpro:2503254. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klara Cermakova (email available below). General contact details of provider: https://iises.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.