• The Journal of Economics, Marketing and Management
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• v.5 no.1
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• pp.27-37
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• 2017

Domestic government debt securities is one of the steps which is taken by the government of Indonesia as a major source of financial budget, covering for the budget deficit, debt payments and interest debt. The purposes of this research are to know the development of budget deficits, government debt and impact of domestic government debt securities against economic growth in Indonesia. Method of analysis used Ordinary Least Squares (OLS) analyzing the impact of the domestic debt against economic growth in Indonesia. This research uses time series data from 1997 to 2014. Total government debt and domestic government debt securities in Indonesia increased during the last five years. The average of domestic government securities was above 50 percent of the total government debt. Estimated results showed domestic government debt securities has a positive and significant effect to economic growth. Official development assistance (ODA) has a negative effect to economic growth. Other variables such as the gross fixed capital formation and receipt of remittance have positive and significant effect, total imports and government expenditure have negative and significant effect against economic growth.

• Asian Journal of Business Environment
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• v.7 no.4
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• pp.5-9
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• 2017

Purpose - Many countries rely on currency depreciation or debt-financed government spending to stimulate their economies. Currency depreciation tends to increase net exports and aggregate demand but reduce short-run aggregate supply due to higher import costs. Debt-financed government spending increases aggregate demand, but the crowding-out effect due to a higher real interest rate may reduce private spending and aggregate demand. Therefore, the net impact of currency depreciation or debt-financed government spending on equilibrium real GDP is unclear. Research design, data, and methodology - This paper examines potential impacts of real depreciation of the ringgit, more government debt as a percent of GDP and other relevant macroeconomic variables on aggregate output in Malaysia. Results - Applying the AD/AS model, this paper finds that aggregate output in Malaysia is positively associated with real appreciation during 2005.Q3-2010.Q3, real depreciation during 2010.Q4-2016.Q1, the debt-to-GDP ratio and the real stock price, negatively affected by the real lending rate and inflation expectations, and is not influenced by the real oil price. Conclusions - Real depreciation of the ringgit after 2010. Q3 or sustainable expansionary fiscal policy would be beneficial to the economy.

• Journal of the Korea Society of Computer and Information
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• v.25 no.12
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• pp.333-339
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• 2020

This study investigated the determinants of debt ratio in public institutions. For this purpose, we analyzed the impact of external and internal factors on debt ratio. In this paper, external factors included government grants and deficits compensation, and internal factors included inefficient management. The results of this study are as follows. First, we find that there is a significant positive relation between government grants and debt ratio. This result means that the higher government grants, the higher debt ratio. Second, we also find that there is a significant positive relation between deficits compensation and debt ratio. This implies that the institutions subject to deficits compensation have higher debt ratio. Third, we can not find a significant relation between welfare benefit and debt ratio. This finding implies that inefficient management is not a factor on debt ratio of public institutions. The results documented in this paper provide important policy implications for investigating the determinants of debt ration in public institutions.

• East Asian Economic Review
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• v.19 no.1
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• pp.99-114
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• 2015

What explains the sharp increase in the Chinese economy's indebtedness, in particular the China's onshore corporate debt? Has the overall debt burden reached a threshold where it poses a systemic risk, thereby making the economy vulnerable to a "Lehman Moment" - with disorderly unwinding of the private sector and sovereign debt? What are the short and longer term implications of China's growing debt problems on domestic economic growth and the broader global political economy? What has Beijing done to ameliorate the problem, how effective were its efforts, and what must it do to deal with this problem?

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.137-145
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• 2020

The aim of this study is to find out the time-series nexus of public debt and economic growth in Malaysia. For an upper-middle income country, Malaysia had experienced over 50% ratio of debt to GDP since 2009 until now. The question arises is whether this trend is healthy to the economy. With a focus into the debt-to-GDP ratio from 1970-2015, this study investigates the short-run and long-run relationship between public debt and economic growth in Malaysia. This study used secondary data by collecting time-series data (1970-2015) from the World Bank Data and Bank Negara Malaysia. Autoregressive Distributed Lag (ARDL) model is applied in this study to examine the relationship between debt and economic growth. Based on ARDL framework, it shows that there is a long-run effect between the debt and economic growth in Malaysia. While the significance value of Error Correction Term shows that there is a long-run adjustment in the short run. Generally, this study found government expenditures, in the long run, strongly influence the GDP per capita. Through the findings, the government expenditures could increase the GDP per capita. The study also reveals that any increment of the debt ratio will result in reduction of the GDP per capita.

• The Journal of the Korea Contents Association
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• v.19 no.8
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• pp.535-543
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• 2019

This study was conducted to find a pathway from the general government debt to GDP ratio(GDR) to the age standardized Suicide Rate(suicide rate). The variables used in this study are GDR, the consumer price index for living necessaries(CPIL), the household debt to GDP ratio(Household Debt), and suicide rate. The data used in this study were standardized data from 2001 to 2015 of Korean Statistical Information Service(KOSIS) and the path analysis was performed using the analysis IBM SPSS 22 and Amos. As a result of the path analysis, the path of GDR-CPIL-Household Debt-Suicide rate, and the direct of effect were in order 0.954, 0.904 and 0.675 were confirmed. The indirect effect of GDR on Household Debt is 0.862, GDR on Sucide Rate is 0.581, CPIL on Suicide Rate is 0.610. Neither of these indirect effect coefficient was significant(p>0.05).

• Journal of Digital Convergence
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• v.18 no.9
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• pp.103-112
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• 2020

The purpose of this study is to examine the current status and components of Korean National Debt and to analyze the effects of each component on National Debt. In the Korean Statistical Information Service (KOSIS), we searched for data such as General Accounting Deficit Conservation, For Foreign Exchange Market Stabilization, For Common Housing Stability, Local Government Net Debt Public Funds, etc that constitute National Debt. The analysis period used a total of 23 annual data from 1997 to 2019. The data collected in this study use the rate of change compared to the previous year for each component. Using this, this study attempted index analysis, numerical analysis, and model analysis. Correlation analysis result, the National Debt has a high relationship with the For Common Housing Stability. For Foreign Exchange Market Stabilization, Public Funds, etc., but has a low relationship with the Local Government Net Debt. Since 1997, National Debt has been increasing similarly to the For Foreign Exchange Market Stabilization, For Common Housing Stability and Public Funds etc. Since 2020, Korea is expected to increase significantly in terms of For Common Housing Stability and Public Funds, etc due to Corona19. At a time when the global economic situation is difficult, Korea's National Debt is expected to increase significantly due to the use of national disaster subsidies. However, if possible, the government expects to operate efficiently for economic growth and financial market stability.

• Journal of Cadastre & Land InformatiX
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• v.45 no.1
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• pp.75-97
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• 2015

Recently public institutions' debt is growing therefore it became an important issue to the level that the government concerns about the possibility of financial burden to reduce the debt. Especially debt of public enterprises in metropolitan areas was in a serious state where debt in late 2013 was 43.2 trillion, which takes approx. 58.4% of 73.9 trillion of debt of all local public enterprises. Sound financial state of local public enterprises is important to public enterprises in metropolitan areas and it may affect seriously financial stability of local governments when public enterprises have financial problems. However, land supply business to form local industrial complexes or local demand for development of public rental housing business always exist; and vitalizing local economy and creating jobs through these businesses are very necessary to develop the areas. However, for local economic development, industirial land business and public rental housing business are needed. In this study, Gwangju Metropolitan City Corporation Ltd is used as a case study to evaluate the local public financial soundness via debt management assessment i.e.(using) the feasibility analysis in the urban development and housing development. As an improvement measure following the result of analysis, for the enhancement of financial soundness of urban innovation corporation, the government and local government shall evaluate and differentiate market demand, price competitiveness, and infrastructure of new town land development project to improve accuracy of project feasibility analysis. Another important insight is that there should be local government-centered management of liabilities of the local government and local public enterprises with the integrated liability management system to reduce the liability of the corporation and solve the issue of debts for local government. This study is significant in that it has analyzed cases from the theoretical aspect to secure financial soundness of national and local public enterprises.

• East Asian Journal of Business Economics (EAJBE)
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• v.4 no.4
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• pp.1-7
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• 2016

This paper has studied the impacts of the exchange rate, government debt as a percent of GDP and other relevant macroeconomic variables on aggregate output in the Philippines. A simultaneous-equation model consisting of aggregate demand and short-run aggregate supply is applied. The dummy variable technique is employed to detect whether the slope and intercept of the real effective exchange rate may have changed. Real depreciation during 1998.Q1 - 2006.Q3, real appreciation during 2006.Q4 - 2016.Q1, a lower domestic debt as a percent of GDP, a lower real interest rate, a higher stock price or a higher lagged real oil price would raise aggregate output. Recent trends of real peso appreciation, declining domestic debt as a percent of GDP, lower real interest rates, and rising stock prices are in line with the empirical results and would promote economic growth. The authorities may need to continue to pursue fiscal prudence and maintain a stronger peso as the positive effect of real appreciation dominates its negative effect in recent years.

• The Journal of Fisheries Business Administration
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• v.34 no.1
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• pp.31-44
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• 2003

The purpose of this study is to investigate empirically interaction among the financing decision, investment decision, and profitability by using 41 fisheries corporations in Korea, and to suggest implications of the empirical results for government's financial policy for fisheries corporations. Sample period is 19 years from 1982 till 2000. This analysis method employs the two stage least squares(2SLS) estimation method. From the results of regression analysis by 2SLS estimation method, the adjusted $R^2$ values were high and the overall F values indicated significant. The empirical results of this study are as follows; (1) determinant factors of capital structure model for fisheries are profitability, firm-size, fisheries investment of total asset, and business risk. As pecking order theory explains, the higher is profitability the lower is debt ratio. The larger firm-size, the higher is debt ratio. The higher is fisheries investment of total asset and business risk, the higher is debt ratio. (2) determinant factors of investment model for fisheries are the change of sales, business risk, and debt ratio. These factors have positive relation to fisheries investment of total asset (3) determinant factors of profitability model for fisheries are fisheries investment of total asset and debt ratio. These factors have negative relation to profitability. On the basis of analysis results, on the government's financial policy for fisheries corporations, I suggests that with interest rate reduction, the government should lend more funds to solve the crisis in the financial structure of the fisheries firms