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

International Journal of Economics and Financial Issues

关键词: government debt;    economic growth;    fiscal sustainability;    the model simultaneously;   

DOI  :  

来源: DOAJ

【 摘 要 】

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.

【 授权许可】

Unknown