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Government debt and economic growth in Malaysia: the role of institutional quality

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  • Siti Nurazira Mohd Daud
  • Jan Podivinsky

Abstract

We examine the role of economic freedom in the debt-growth model. There is evidence of the contingency effect of institutional quality on the relationship between government debt and economic growth.

Suggested Citation

  • Siti Nurazira Mohd Daud & Jan Podivinsky, 2014. "Government debt and economic growth in Malaysia: the role of institutional quality," Applied Economics Letters, Taylor & Francis Journals, vol. 21(17), pages 1179-1183, November.
    • Handle: RePEc:taf:apeclt:v:21:y:2014:i:17:p:1179-1183
    DOI: 10.1080/13504851.2014.916378
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    References listed on IDEAS

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    1. Bruce E. Hansen, 2000. "Sample Splitting and Threshold Estimation," Econometrica, Econometric Society, vol. 68(3), pages 575-604, May.
    2. Barro, Robert J, 1979. "On the Determination of the Public Debt," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 940-971, October.
    3. Melecky, Martin, 2012. "Formulation of public debt management strategies: An empirical study of possible drivers," Economic Systems, Elsevier, vol. 36(2), pages 218-234.
    4. Qayyum, Unbreen & Din, Musleh-ud & Haider, Adnan, 2014. "Foreign aid, external debt and governance," Economic Modelling, Elsevier, vol. 37(C), pages 41-52.
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    1. Chowdhury, Mohammad Ashraful Ferdous & Prince, Ehsanur Rauf & Shoyeb, Mohammad & Abdullah, Mohammad, 2024. "The threshold effect of institutional quality on sovereign debt and economic stability," Journal of Policy Modeling, Elsevier, vol. 46(1), pages 39-59.
    2. Kassouri, Yacouba & Altıntaş, Halil & Alancioğlu, Erdal & Kacou, Kacou Yves Thierry, 2021. "New insights on the debt-growth nexus: A combination of the interactive fixed effects and panel threshold approach," International Economics, Elsevier, vol. 168(C), pages 40-55.
    3. Martins Iyoboyi & Abdullahi Badiru, 2025. "The Influence of Economic Institutions in the Debt-Growth Nexus: Evidence from Nigeria," Open Economies Review, Springer, vol. 36(1), pages 177-195, February.
    4. Panagodage Janaka Sampath Fernando & Hasthimuni Nadeeka De Silva & Athula Naranpanawa & Chandika Gunasinghe, 2017. "Revisiting the debt-growth nexus: Empirical evidence from Sri Lanka," Discussion Papers in Economics economics:201706, Griffith University, Department of Accounting, Finance and Economics.
    5. Mindaugas Butkus & Janina Seputiene, 2018. "Growth Effect of Public Debt: The Role of Government Effectiveness and Trade Balance," Economies, MDPI, vol. 6(4), pages 1-27, November.

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