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Public Debt Structure on Economic Growth in Malaysia<br />

Foo Tzen Yoong<br />

Supervisor: Assoc. Prof Dr. Nur Azura Binti Sanusi<br />

Bachelor of Economics (Natural Resources)<br />

School of Social and Economic Development<br />

This paper examines the trend of debt ratio, and the time series relationships between<br />

GDP per capita, debt ratio, government expenditures and household expenditures in<br />

Malaysia for the period 1970-2016. The Autoregressive Distributed Lag (ARDL)<br />

framework shows that there’s a long-run effect between the debt and economic<br />

growth in Malaysia. The Error Correction Term shows that there’s an 117% of<br />

adjustment by the following year. The results also reveal that the CUSUM and<br />

CUSUMSQ tests are stable.<br />

1371 | UMT UNDERGRADUATE RESEARCH DAY 2018

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