The Social Sciences
ISSN: Online 1993-6125ISSN: Print 1818-5800
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Abstract
Household debt problem is established to have initiated economic slowdown and financial crises resulting in unsustainable global financial stability. High level of household debt may result in emotional and psychological stress as well as social and family predicaments in the domestic economy. This study analyzes the determinants of household indebtedness in eight developing and developed countries in Asia. The study applies econometric analysis to ascertain the significance of the macroeconomic determinants and household characteristics on household debt. Unit root tests were carried out to prevent spurious regression. Empirical evidence suggests major differences in determinants between the two groups of countries. In developing Asian countries, household debt is most affected by macro-economic factors including interest rate, inflation rate and unemployment rate while in developed Asian countries, indebtedness is affected by consumption, working and retirement population as well as household savings.
How to cite this article:
Siti Aminah Mainal, Jamaliah Mohd Yusof and S.F.Ho. Catherine. Household Debt, Macroeconomic Fundamentals and Household Characteristics in Asian Developed and Developing Countries.
DOI: https://doi.org/10.36478/sscience.2016.4358.4362
URL: https://www.makhillpublications.co/view-article/1818-5800/sscience.2016.4358.4362