Household debt and country economic growth: Does a magic threshold exist?
Average household debt has now surpassed the level of 2008, which signals an increase in systemic risk and thereby the fragility of the financial system. This paper investigates the effect of household debt on 24 countries’ economic growth. In addition, we also examine whether a tipping point of deb...
| Published in: | International Journal of Business and Society |
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| Format: | Article |
| Language: | English |
| Published: |
Universiti Malaysia Sarawak
2021
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| Online Access: | https://www.scopus.com/inward/record.uri?eid=2-s2.0-85105250267&doi=10.33736%2fijbs.3168.2021&partnerID=40&md5=2acc539d027934c3cc9c8a50dd046aac |
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2-s2.0-85105250267 |
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2-s2.0-85105250267 Daud S.N.M.; Podivinsky J.M.; Abd Samad K. Household debt and country economic growth: Does a magic threshold exist? 2021 International Journal of Business and Society 22 1 10.33736/ijbs.3168.2021 https://www.scopus.com/inward/record.uri?eid=2-s2.0-85105250267&doi=10.33736%2fijbs.3168.2021&partnerID=40&md5=2acc539d027934c3cc9c8a50dd046aac Average household debt has now surpassed the level of 2008, which signals an increase in systemic risk and thereby the fragility of the financial system. This paper investigates the effect of household debt on 24 countries’ economic growth. In addition, we also examine whether a tipping point of debt exists. By employing the threshold method, we found that the impact of household debt on a country’s economic growth is negative. Because the relationship between debt and growth is a monotonically non-increasing function, we do not find a magic threshold of debt. © 2021, Universiti Malaysia Sarawak. All rights reserved. Universiti Malaysia Sarawak 15116670 English Article All Open Access; Gold Open Access |
| author |
Daud S.N.M.; Podivinsky J.M.; Abd Samad K. |
| spellingShingle |
Daud S.N.M.; Podivinsky J.M.; Abd Samad K. Household debt and country economic growth: Does a magic threshold exist? |
| author_facet |
Daud S.N.M.; Podivinsky J.M.; Abd Samad K. |
| author_sort |
Daud S.N.M.; Podivinsky J.M.; Abd Samad K. |
| title |
Household debt and country economic growth: Does a magic threshold exist? |
| title_short |
Household debt and country economic growth: Does a magic threshold exist? |
| title_full |
Household debt and country economic growth: Does a magic threshold exist? |
| title_fullStr |
Household debt and country economic growth: Does a magic threshold exist? |
| title_full_unstemmed |
Household debt and country economic growth: Does a magic threshold exist? |
| title_sort |
Household debt and country economic growth: Does a magic threshold exist? |
| publishDate |
2021 |
| container_title |
International Journal of Business and Society |
| container_volume |
22 |
| container_issue |
1 |
| doi_str_mv |
10.33736/ijbs.3168.2021 |
| url |
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85105250267&doi=10.33736%2fijbs.3168.2021&partnerID=40&md5=2acc539d027934c3cc9c8a50dd046aac |
| description |
Average household debt has now surpassed the level of 2008, which signals an increase in systemic risk and thereby the fragility of the financial system. This paper investigates the effect of household debt on 24 countries’ economic growth. In addition, we also examine whether a tipping point of debt exists. By employing the threshold method, we found that the impact of household debt on a country’s economic growth is negative. Because the relationship between debt and growth is a monotonically non-increasing function, we do not find a magic threshold of debt. © 2021, Universiti Malaysia Sarawak. All rights reserved. |
| publisher |
Universiti Malaysia Sarawak |
| issn |
15116670 |
| language |
English |
| format |
Article |
| accesstype |
All Open Access; Gold Open Access |
| record_format |
scopus |
| collection |
Scopus |
| _version_ |
1809677783435051008 |