Exploring Public Debt Determinants in ASEAN-5 Countries through the Lens of the Harrod-Domar Model

  • Amri Sulong Faculty of Business & Communications, Universiti Malaysia Perlis, Kangar, Perlis, Malaysia
  • Mohd Shahidan Shaari Faculty of Business & Communications, Universiti Malaysia Perlis, Kangar, Perlis, Malaysia
  • Hafizah Abdul Rahim Faculty of Business & Communications, Universiti Malaysia Perlis, Kangar, Perlis, Malaysia


This study investigates the determinants of public debt in ASEAN-5 countries from 1996 to 2021, utilizing the Harrod-Domar model. The independent variables of interest are savings and investment, while the dependent variable is public debt. The analysis reveals significant findings: savings exhibit a positive influence on public debt, aligning with the Harrod-Domar model's emphasis on the role of savings in economic development. Conversely, investment demonstrates a negative influence on public debt, consistent with the model's proposition that increased investment contributes to economic growth and potentially mitigates the accumulation of public debt. The study contributes to the understanding of the dynamics between savings, investment, and public debt in the context of ASEAN-5 economies, offering insights for policymakers and researchers concerned with fiscal sustainability.


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How to Cite
Sulong, A., Mohd Shahidan Shaari, & Hafizah Abdul Rahim. (2024). Exploring Public Debt Determinants in ASEAN-5 Countries through the Lens of the Harrod-Domar Model. The Journal of Management Theory and Practice (JMTP), 4(2), 26-33. https://doi.org/10.37231/jmtp.2023.4.2.352
Finance & Economics