The impact of domestic public debt on financial development in Malaysia
When the government heavily borrows domestically from the banking sector to finance its expenditures, there is possibility that public debt will lead to a crowding out effect on private investment since bank credit is a primary funding source for the private sector. This study examines the linkages...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Macrothink Institute
2015
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| Online Access: | http://psasir.upm.edu.my/id/eprint/46602/1/The%20impact%20of%20domestic%20public%20debt%20on%20financial%20development%20in%20Malaysia.pdf |
| _version_ | 1796974698326654976 |
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| author | Mok, Wei Mun Ismail, Normaz Wana |
| author_facet | Mok, Wei Mun Ismail, Normaz Wana |
| author_sort | Mok, Wei Mun |
| collection | UPM |
| description | When the government heavily borrows domestically from the banking sector to finance its expenditures, there is possibility that public debt will lead to a crowding out effect on private investment since bank credit is a primary funding source for the private sector. This study examines the linkages between domestic public debt and financial development in Malaysia for the period of 1980 to 2010. Our analysis suggests that domestic public debt from banks has a negative relationship with financial development. Meanwhile, the crowding out effect is evident during the occurrence of financial crises. |
| first_indexed | 2024-03-06T09:00:46Z |
| format | Article |
| id | upm.eprints-46602 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T09:00:46Z |
| publishDate | 2015 |
| publisher | Macrothink Institute |
| record_format | dspace |
| spelling | upm.eprints-466022018-02-26T00:35:51Z http://psasir.upm.edu.my/id/eprint/46602/ The impact of domestic public debt on financial development in Malaysia Mok, Wei Mun Ismail, Normaz Wana When the government heavily borrows domestically from the banking sector to finance its expenditures, there is possibility that public debt will lead to a crowding out effect on private investment since bank credit is a primary funding source for the private sector. This study examines the linkages between domestic public debt and financial development in Malaysia for the period of 1980 to 2010. Our analysis suggests that domestic public debt from banks has a negative relationship with financial development. Meanwhile, the crowding out effect is evident during the occurrence of financial crises. Macrothink Institute 2015 Article NonPeerReviewed text en http://psasir.upm.edu.my/id/eprint/46602/1/The%20impact%20of%20domestic%20public%20debt%20on%20financial%20development%20in%20Malaysia.pdf Mok, Wei Mun and Ismail, Normaz Wana (2015) The impact of domestic public debt on financial development in Malaysia. International Journal of Social Science Research, 3 (2). pp. 1-19. ISSN 2327-5510 http://www.macrothink.org/journal/index.php/ijssr/index 10.5296/ijssr.v3i2.7167 |
| spellingShingle | Mok, Wei Mun Ismail, Normaz Wana The impact of domestic public debt on financial development in Malaysia |
| title | The impact of domestic public debt on financial development in Malaysia |
| title_full | The impact of domestic public debt on financial development in Malaysia |
| title_fullStr | The impact of domestic public debt on financial development in Malaysia |
| title_full_unstemmed | The impact of domestic public debt on financial development in Malaysia |
| title_short | The impact of domestic public debt on financial development in Malaysia |
| title_sort | impact of domestic public debt on financial development in malaysia |
| url | http://psasir.upm.edu.my/id/eprint/46602/1/The%20impact%20of%20domestic%20public%20debt%20on%20financial%20development%20in%20Malaysia.pdf |
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