The Determinants of Household Debt in Malaysia

Norliza Che Yahya, Bushra Mohd Zaki, Nik Norain Izzati Nik Azid, Nur Fatihah Mohd Ali and Nor Amanie Najihah Hussain

Information Management and Business Review, 2023, vol. 15, issue 3, 183-194

Abstract: This study aims to observe the determinants of the factors affecting household debt in Malaysia. This study has listed six independent variables that would affect Malaysia’s household debt: real interest rate, inflation rate, unemployment rate, household consumption expenditure, gross domestic product (GDP), and housing price index (HPI). This research was conducted by using annual data for 30 years (1991-2021); this study also used a quantitative approach to the collection of data using secondary data such as the website of the World Bank, Department of Statistics Malaysia, Eikon Thomson Reuters, and Bank Negara Malaysia. A theoretical model with the hypothesized relationships was tested with the help of the structural equation modelling procedures. Findings showed that the unemployment rate and gross domestic product have a positive and significant relationship with household debt. These determinants are directly affecting household debt in Malaysia, especially in microeconomic factors. This study will contribute to a better understanding that household debt can be influenced by other factors. Further study on the other determinants of household debt may result in varying results.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ojs.amhinternational.com/index.php/imbr/article/view/3528/2268 (application/pdf)
https://ojs.amhinternational.com/index.php/imbr/article/view/3528 (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:rnd:arimbr:v:15:y:2023:i:3:p:183-194

DOI: 10.22610/imbr.v15i3(I).3528

Access Statistics for this article

More articles in Information Management and Business Review from AMH International
Bibliographic data for series maintained by Muhammad Tayyab ().