The Macroeconomic Determinants of Household Debt in Malaysia

Mohamed, Sulzakimin; Mohamadon, Siti Sara; Ibrahim, Wan Nazihah Wan; Nasrul, Ferri; Hassan, Siti Salwa; Isa, Mohamad Azwan Md; Noh, Mohd Aderi Che

doi:10.6007/ijarbss/v10-i5/7425

Cited by 3 publications

(3 citation statements)

References 27 publications

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“…In addition, our study is more extensive compared to previous studies where it is not only focused on certain factors. For example, previous studies from (Ma'in et al, 2016;Mohamed et al, 2020;Nizar, 2016) only focused on the relationship between household debt and macroeconomics. Indirectly it has limited future researchers to study the factors affecting household debt.…”

Section: Discussionmentioning

confidence: 99%

The Determinants of Household Debt in Malaysia

Yahya,

Zaki,

Nik Azid

et al. 2023

IMBR

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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.

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Section: Discussionmentioning

confidence: 99%

The Determinants of Household Debt in Malaysia

Yahya,

Zaki,

Nik Azid

et al. 2023

IMBR

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“…In the works of agrarian economists, the thesis about the need to provide agriculture with cheap and affordable credit, as well as providing direct state assistance, is widespread [10][11][12][13][14] . [15][16][17][18] are usually limited to stating the growing role of bank credit in the formation of agricultural resources, but do not delve into the existing lending mechanisms in detail.…”

Section: Literature Reviewmentioning

confidence: 99%

Development Trends of the Market of Agricultural Lending to Households in Ukraine: Analysis of Consumer and Mortgage Loans

Andros

Gerasymchuk

2023

Res. World Agric. Econ.

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The purpose of the article is to assess the conditions and identify the features of the market for consumer and mortgage lending to households based on the economic and statistical analysis of the data panel. The instrumental and methodological apparatus of the article compiled general scientific principles and approaches to economic analysis: Scientific abstraction, analysis and synthesis, grouping, typology, comparison, qualitative and quantitative expert assessments; logical and contextual methods of processing theoretical material, as well as the method of economic and statistical comparisons. The article analyzes the dynamics of consumer and mortgage loans for households in Ukraine from 2007 to 2023, and highlights their socio-economic significance. The main problems in the field of consumer lending are formulated, the resolution of which is necessary for the intensive agricultural activity of households. It has been established that, despite the accumulation of certain experiences in the banking sector, the mortgage lending market has not become massive today. It is concluded that the reasons for this situation are the difficulty in the practical application of legislative regulations aimed at protecting the interests of creditors; high level of interest rates; low level of real income of households and, consequently, low effective demand for mortgage loans; the impossibility of mass provision of long-term mortgage loans due to high risk (interest, credit, legislative); almost complete exclusion of the state from participation in the formation of a civilized market for housing mortgage lending. The prerequisites for the further development of consumer and mortgage lending to households in Ukraine are formulated. The prospects for development and the main directions for improving consumer and mortgage lending to households are determined.

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“…GDP and household debt are closely linked, both in the short and long term. Positive economic growth has been found to reflect higher GDP in which households earn higher incomes and banks issue additional debt (Mohamed et al, 2020). The unemployment rate is one of the common indicators that affect household indebtedness.…”

Section: The Determinants Of Household Indebtednessmentioning

confidence: 99%

The Impact of the COVID-19 Pandemic on the Consumer Credit Market in Eurozone Countries

Puszer

Czech

2022

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The Macroeconomic Determinants of Household Debt in Malaysia

Cited by 3 publications

References 27 publications

The Determinants of Household Debt in Malaysia

The Determinants of Household Debt in Malaysia

Development Trends of the Market of Agricultural Lending to Households in Ukraine: Analysis of Consumer and Mortgage Loans

The Impact of the COVID-19 Pandemic on the Consumer Credit Market in Eurozone Countries

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