Determinants of household debt in emerging economies: A macro panel analysis

Samad, Khairunnisa Abd; Daud, Siti Nurazira Mohd; Dali, Nuradli Ridzwan Shah Mohd

doi:10.1080/23311975.2020.1831765

Cited by 16 publications

(20 citation statements)

References 31 publications

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“…However, rising demands and anticipated future asset margins encourage financial institutions to provide subprime mortgages to customers with slacker lending rules (Justiniano et al, 2016;Mian et al, 2017). As a result, financial development was the primary driver of increasing household debt (Samad et al, 2020), usually resulting in financial crises (Aliber & Kindleberger, 2017).…”

Section: H O U S E H O L D D E B T I S T H E W H E E L O F Consumptio...mentioning

confidence: 99%

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2022

JSSH

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Household debt has a detrimental effect on economic growth. Thus, this study examines the connection between household debt and growth in institutional quality. The impact of the relationship on economic growth is assessed using a bias-corrected least square dummy variable of 43 nations. We discovered that institutional quality enhances the role of household debt in sustaining economic growth. Household debt is significantly detrimental to growth when institutional quality is low. Its harmful effect can be lessened with medium institutional quality. Interestingly, higher household debt is beneficial in sustaining growth if accompanied by better institutional quality. Household debt and institutions reinforce each other towards sustaining economic stability for countries with higher institutional quality. The findings are expected to assist central banks and other government authorities in formulating the relevant institutional settings for ensuring economic sustainability, such as prudent debt management and macro-prudential policy. Future studies may consider empirical analysis on a distinct split sample of advanced and emerging economies and employ different estimator methods.

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Section: H O U S E H O L D D E B T I S T H E W H E E L O F Consumptio...mentioning

confidence: 99%

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2022

JSSH

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“…The LCH and PIH concepts view debt as an instrument that ensures stable consumption and subsistence over a person's life cycle, and emphasise that a household resorts to loans when earnings are lower than expected. Based on the LCH and PIH, it can be concluded that debt is a useful tool for increasing consumption (Abd Samad, Daud, & Dali, 2020).…”

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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“…This result also corresponded to Meng, Hoang and Siriwardana [24], who explored the determinants of Australian household debt. Meanwhile, Abd Samad, Daud and Dali [25] conducted a study in emerging economies, and highlighted that financial development, house prices and lending interest rate have mainly been associated with rising household debt, while the unemployment rate and inflation are negatively associated with household debt.…”

Section: Economic Determinants Of Household Debtmentioning

confidence: 99%

“…Sociodemographic characteristics considered were the number of years of education received by people aged 15-59, the number of registered marriages, household expenditure, and household income [16,18]. The second group of independent variables was related to economic characteristics, namely, employment rate, proportion of population living in poverty, and gross provincial product per capita [10,[23][24][25]. Lastly, this study contributes to the determinants of household debt literature by providing novel evidence on the effects of credit-accessibility development for household financing.…”

Section: Data and Variables Descriptionmentioning

confidence: 99%

Analysis of Difference in Household Debt across Regions of Thailand

et al. 2021

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This study analyzed the determinants of household debt in Thailand at both the regional and the national levels using the panel data of 76 provinces over the years 2009–2017. The Panel Quantile Regression Model was employed to enable the analysis of the formation of household debt ranging from low to high levels. The findings indicate that household indebtedness in different regions has been shaped by a variety of factors, and that households in the same region with different levels of debt burden would experience different impacts or outcomes. We also tested the convergence of household debt, which produced the thought-provoking finding that household debt convergence failed to occur at both the national and the regional levels, while household debt divergence was found instead at the statistical significance level in some regions. The growing debt divergence phenomenon might be an outcome indicator of the unequal access to credit sources among different households in Thai society.

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Determinants of household debt in emerging economies: A macro panel analysis

Cited by 16 publications

References 31 publications

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

Analysis of Difference in Household Debt across Regions of Thailand

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