The effect of macroeconomic variables on public debt in ASEAN countries / Nurfazilah Wahadiah Abdurahman

This study analyzed the relationship of Public debt on macroeconomics
variables and it showed how those factors affecting the public debt. This study
investigates the effect of public debt on Macroeconomics variables in Eight ASEAN
countries which is Malaysia, Indonesia, Thailand, Vietnam, Singapore, Brunei,
Philippines, and Myanmar. The data collected from 2004 to 2018 and the
macroeconomics variables are Gross Domestic Product (GDP), Foreign direct
investment, Inflation Rate, Trade Openness, and Inflation on the public debt in ASEAN
countries. Next, method is use in these studies diagnostic testing, panel unit root testing,
multicollinearity, heteroskedasticity and autocorrelation test. While, result of Hausman
Test we choose fixed effect model the appropriate panel data estimator for baseline
model. In addition, Results obtained from this research shows that trade openness and
inflation are highly significant and negative relationship on public debt while other
variables which is foreign direct investment, gross domestic product and interest rate
are not significant but has positive effect on public debt.