EconPapers    
Economics at your fingertips  
 

The Impact of Government’s Foreign Debt on Fiscal Sustainability of Indonesia

Yohanes Maria Vianey Mudayen
Additional contact information
Yohanes Maria Vianey Mudayen: Department of Economic Education, Universitas Sanata Dharma Yogyakarta, Indonesia.

International Journal of Economics and Financial Issues, 2017, vol. 7, issue 3, 746-751

Abstract: The aim of the research is to analyze the impact of government’s foreign debt on fiscal sustainability (FS) of Indonesia in 1979-2016. The model used in this research is a simultaneous equation model with the method of two stage least square. The simultaneous equation model regression results indicate that government foreign debt, FS which derives from the reduced-form equation and primary balance has a significant impact on the growth of economy in Indonesia positively. Government foreign debt lag and interest rate of Central Bank of Indonesia have a negative impact and it is significant toward the FS of Indonesia. However, the economic growth which comes from reduced form affect positively and have a significant impact on the FS of Indonesia.

Keywords: Government Debt; Economic Growth; Fiscal Sustainability; The Model Simultaneously (search for similar items in EconPapers)
JEL-codes: E62 F34 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.econjournals.com/index.php/ijefi/article/download/4331/pdf (application/pdf)
http://www.econjournals.com/index.php/ijefi/article/view/4331/pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2017-03-95

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Series data maintained by Ilhan Ozturk ().

 
Page updated 2017-09-29
Handle: RePEc:eco:journ1:2017-03-95