ScholarLens Back to search
2018•Andalas University eThesis (Andalas University)Open access

THE PROBLEM OF DEBT OVERHANG IN INDONESIA

Ningtias Deges

Open full text 0 citations

Abstract

This study aims to analyze the existence of Debt Overhang with external debt effects on economic growth in Indonesia. Data from this research is secondary data taken from Bank Indonesia from 2000 to 2015 in the form of quarterly data. This research uses Error Correction Model (ECM) to predict short run and long run. The independent variable in this study is external debt, while the dependent variable is Gross Domestic Product (GDP). The result indicates that external debt has insignificant and positive relationship with GDP in short run. External debt has significant and negative relationship with GDP in long run. Based on these findings, there is Debt Overhang in Indonesia therefore the government and Bank Indonesia need to be alert and closely monitor the increase in external debt. \n \nKeyword: Debt Overhang, GDP, External Debt, ECM

Open-access reader

About this research paper

What this paper is about

This study aims to analyze the existence of Debt Overhang with external debt effects on economic growth in Indonesia. Data from this research is secondary data taken from Bank Indonesia from 2000 to 2015 in the form of quarterly data. This research uses Error Correction Model (ECM) to predict short run and long run. The independent variable in this study is external debt, while the dependent variable is Gross Domestic Product (GDP). The result indicates that external debt has insignificant and positive relationship with GDP in short run. External debt has significant and negative relationship with GDP in long run. Based on these findings, there is Debt Overhang in Indonesia therefore the government and Bank Indonesia need to be alert and closely monitor the increase in external debt. \n \nKeyword: Debt Overhang, GDP, External Debt, ECM

Why it matters

A significance statement is not available in the OpenAlex record.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

This study aims to analyze the existence of Debt Overhang with external debt effects on economic growth in Indonesia. Data from this research is secondary data taken from Bank Indonesia from 2000 to 2015 in the form of quarterly data. This research uses Error Correction Model (ECM) to predict short run and long run. The independent variable in this study is external debt, while the dependent variable is Gross Domestic Product (GDP). The result indicates that external debt has insignificant and positive relationship with GDP in short run. External debt has significant and negative relationship with GDP in long run. Based on these findings, there is Debt Overhang in Indonesia therefore the government and Bank Indonesia need to be alert and closely monitor the increase in external debt. \n \nKeyword: Debt Overhang, GDP, External Debt, ECM

Key concepts: Debt overhang, External debt, Debt, Debt-to-GDP ratio, Internal debt, Debt levels and flows, Gross domestic product, Monetary economics

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
THE PROBLEM OF DEBT OVERHANG IN INDONESIA — Research Paper | ScholarLens