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External Debt and Economic Growth in 4 Selected Asean Countries
Yusreena Binti Mohd Yusoff
Supervisor: Assoc. Prof. Dr. Nur Azura Sanusi
Bachelor of Economics (Natural Resources)
School of Social and Economic Development
This study investigates the contribution of external debt to the economic growth in 4
selected ASEAN countries which is Malaysia, Philippines, Thailand and Indonesia. The
study employed data from 1970 to 2016 which were sourced from World Bank Data,
IndexMundi and Malaysian Economics Indicator. It used gross domestic product as
the proxy for economic growth being the dependent variable and external debt, debt
service payment, export, inflation and exchange rate as the explanatory variables. The
model are tested using Autoregressive Distributed Lagged (ARDL) bound test. In
addition, stationary test are used to ascertain the stationary and robustness test are
conducted such as lagrange multiplier test. The expected findings of study that
external debt contributes positively to the economic growth of Malaysia. Next, the
accumulation of external debt is associated with an increase in Philippines’s economic
growth. Moreover, external debt also contributes to the Thailand and Indonesia
economic.
1374 | UMT UNDERGRADUATE RESEARCH DAY 2018