The Impact of Government Debt on Economic Growth in ASEAN Countries
| dc.contributor.author | Wennie Hong Wui Xhin | |
| dc.date.accessioned | 2026-08-20T06:59:25Z | |
| dc.date.issued | 2025 | |
| dc.description | This study investigates how government debt, foreign direct investment (FDI), and population increase affect economic growth in ASEAN countries using panel data from 2013 to 2022. As economic sustainability becomes a greater concern in developing countries, understanding the determinants of GDP is critical for informed policymaking. The study employs panel data regression techniques including Pooled OLS, Fixed Effects (FE), Random Effects (RE), and Robust Least Squares, with the Fixed Effects model with robust standard errors identified as the most appropriate based on specification tests. The findings show that government debt has a positive and statistically significant effect on economic growth, implying that productive public borrowing can help with development. On the other hand, FDI demonstrated a negative association, indicating structural difficulties such as insufficient absorptive capacity or profit repatriation. Population growth had no statistically significant impact on GDP. These findings emphasize the significance of cautious debt management, targeted FDI policies, and human capital investments in ASEAN countries to improve the quality of growth. The study also underlines the need for future research using larger datasets and dynamic models to have a better grasp of these macroeconomic relationships. | |
| dc.identifier.uri | https://scholarhub.unimas.my/handle/123456789/1695 | |
| dc.publisher | Universiti Malaysia Sarawak (UNIMAS) | |
| dc.relation.ispartofseries | Faculty of Economics and Business | |
| dc.subject | Government Debt, Economic Growth, Panel Data Analysis, ASEAN Countries, Fixed Effect Model | |
| dc.title | The Impact of Government Debt on Economic Growth in ASEAN Countries | |
| dc.type | Final Year Project |