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Factors That Influenced the Raising Household Debt to the Economic Growth<br />

Nik Putri Syazlin Adlina Binti Muhamaad Zaki<br />

Supervisor: Dr. Nor Ermawati Binti Hussain<br />

Bachelor of Economics (Natural Resources)<br />

School of Social and Economic Development<br />

This study aims to investigate the factors that influence the increase in household debt<br />

to economic growth based on monthly series data from January 2010 to December 2015.<br />

The study uses unit root test, co-integration, vector error correction model and also the<br />

causes and effects. Apart from that, the finding indicates that the variables are stationary<br />

at first-level differences, significant relationships in the long term and insignificant in the<br />

short term and have the cause and effect of the relationship between the household debt<br />

and the economic growth.<br />

Keywords: household debt, economic growth, unit root test, vector error correction model<br />

and causes and effect.<br />

1479 | UMT UNDERGRADUATE RESEARCH DAY 2018

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