Determinants of household debt in Malaysia from the year 2010 to 2017 / Zahariah Mohd Zain, Nurul Ainun Ahmad Atory and Sarah Amirah

Mohd Zain, Zahariah and Ahmad Atory, Nurul Ainun and Hanafi, Sarah Amirah (2019) Determinants of household debt in Malaysia from the year 2010 to 2017 / Zahariah Mohd Zain, Nurul Ainun Ahmad Atory and Sarah Amirah. Advances in Business Research International Journal (ABRIJ), 5 (2). pp. 1-11. ISSN 2462-1838

Abstract

Household debt has become an issue in the Malaysian economy as it affects the country socially and economically.This study aims to examine the determinants of household debt from the year 2010 until 2017. This study employs the Ordinary Least Square (OLS) method and the macroeconomic variables used in this study are Gross Domestic Product (GDP), base lending rate, unemployment and housing price as independent variables. The results indicate that the trend of household debt in Malaysia has shown a continuous rise from the year 2010 to 2017. GDP, base lending rate and housing price indicate a positive relationship towards household debt while unemployment shows a negative relationship to household debt in Malaysia. All explanatory variables have shown a significant relationship except for GDP. Housing price has been found to be the most significant factor and positively related to household debt. The findings indicate that the higher the price of houses, the higher the household debt will be.

Metadata

Item Type: Article
Creators:
CreatorsID Num. / Email
Mohd Zain, Zahariahzahar297@uitm.edu.my
Ahmad Atory, Nurul Ainunnurulainun@uitm.edu.my
Hanafi, Sarah Amirahsarahhanafi96@gmail.com
Subjects: H Social Sciences > HG Finance > Banking
H Social Sciences > HG Finance > Credit. Debt. Loans
H Social Sciences > HG Finance > Credit. Debt. Loans > Commercial credit. Commercial loans. Credit management
H Social Sciences > HG Finance > Financial management. Business finance. Corporation finance > Debt financing (Corporations)
Divisions: Universiti Teknologi MARA, Selangor > Puncak Alam Campus > Faculty of Business and Management
Journal or Publication Title: Advances in Business Research International Journal (ABRIJ)
Journal: UiTM Journal > Advances in Business Research International Journal (ABRIJ)
ISSN: 2462-1838
Volume: 5
Number: 2
Page Range: pp. 1-11
Official URL: https://abrij.uitm.edu.my/images/document/vol5no2/...
Item ID: 29638
Uncontrolled Keywords: Household debt, GDP, base lending rate, unemployment and housing price.
URI: http://ir.uitm.edu.my/id/eprint/29638

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