Open AccessPublic Debt and Economic Growth in The SouthEast Asian Countries
Author(s) -
Muhammad Ghafur Wibowo
Publication year - 2017
Publication title -
signifikan
Language(s) - English
Resource type - Journals
eISSN - 2476-9223
pISSN - 2087-2046
DOI - 10.15408/sjie.v6i1.4779
Subject(s) - debt , vector autoregression , economics , government (linguistics) , structural vector autoregression , external debt , debt to gdp ratio , government debt , macroeconomics , southeast asia , development economics , monetary economics , monetary policy , linguistics , philosophy , ancient history , history
This study examines the relationship between public debt and economic growth in eight countries in Southeast Asia that are members of ASEAN. Through the study will contribute reference for each country to establish their macroeconomic policies. Using 10 years of data from 2006 to 2015 and analysis tools Autoregression Vector (VAR), the study attempts to test the theory of finance led growth. The main finding of this study is that public debt is actually able to increase the economic growth of a country significantly, although it takes a few years of its existence. This finding supports several previous studies that demonstrate the important role of government debt to the economy of a country.DOI: 10.15408/sjie.v6i1.4779