Studies on the accumulation of international reserves by most of the crisis-hit countries have progressively gained in importance and continue to attract discussion among academics and policy-makers. Furthermore, the unprecedented increase of international reserves among the Asian crisis-hit countries (due to Asian Financial Crisis 1997/98) including Malaysia and the lack of studies on this topic underline the urgency of analyzing this issue. Thus, this paper specifically attempts to shed light on the cost of the joint decision to hold international reserves and external debt after the 1997 Asian financial crisis. The article's main findings are that holding international reserves does confer benefits on the country in terms of lower cost and improves the country's ability to protect itself from sudden shock. The results also suggest that Malaysia should hold international reserves of at least 4.96 months of imports, which is higher than the conventional rule of thumb. However, in its current international reserves position, Malaysia could finance 9.3 months of retained imports, which is too much and far above the optimal level.

The objective of this paper is to examine the role of external debt in a country's economic growth. With 31 developing countries divided into four regions, this paper employs the recent technique of spatial econometrics to incorporate the neighbouring effect in the debt-growth model. The empirical results reveal that the East Asia and Pacific, Latin America and Caribbean and the Sub-Saharan Africa regions provide convincing evidence to support a negative relationship between the external debt and economic growth. In addition, there is evidence to support the existence of spillover growth among neighbouring countries. This suggests that the role of spatial correlation is important and should be considered for any analysis of the growth model. � 2011 Springer-Verlag.

The 2008 financial crisis was the result of escalating house prices and a hasty increase in household debt. In a sample of 41 advanced and emerging countries, this paper employs a logit estimation model to examine the role of household debt and house price as indicators of systemic banking for the period of 1980 until 2018. The results confirm that a high growth in household debt and house price increase enhances the probability for crises to erupt. While this is a consistent evidence for advanced economies, an observation of emerging economies suggests that only a change in household debt and not a change in house prices may cause banking crises to erupt. Policymakers can thus design predictive EWS models based on the surge in household debt and house prices prior to the crises which would lessen, if not alleviate, the effect of upcoming economic shocks by monitoring the macroeconomic changes. � 2020 Penerbit Universiti Kebangsaan Malaysia. All rights reserved.

This article conducts an investigation into the effect of federal government debt on Malaysia�s economic growth with the application of threshold regression. The result reveals that, beyond the government debt threshold level, the country is experiencing a positive effect on economic growth. � 2015, � 2015 SAGE Publications.

We examine the role of economic freedom in the debt-growth model. There is evidence of the contingency effect of institutional quality on the relationship between government debt and economic growth. � 2014, Taylor & Francis.

The objective of this paper is to investigate the relationship between financial and economic uncertainty (risk) and the demand for international reserves. In addition, the association between this relationship and the political risk condition is further analysed for selected emerging economies. By using panels of 20 emerging countries, the empirical results show that the decision by the emerging economies to hold international reserves is largely dependent on the fluctuations in the financial risk indicators. In addition, the interdependency between the demand reserves function and the type of financial risk indicator also varies across countries' political conditions. � 2014 Inderscience Enterprises Ltd.

This study aims to examine the relationship between growth and unemployment in Egypt between 2006 Q1 - 2013 Q2. The Dickey-Fuller (ADF) unit root test, the Johansen Co-integration test and the Standard Granger Causality test were applied to examine the relationship between unemployment and Gross Domestic Product (GDP). The results indicated there were no cointegration relationship between the variables of unemployment and GDP specifically implying there is no long-term relationship between the variables. However, in the short term, there is a direct causality relationship have been observed between the unemployment rate to economic growth. � 2015, Mediterranean Center of Social and Educational Research. All rights reserved.

The results demonstrate that there is a long-run relationship between federal government debt and economic growth in Malaysia. In addition, our findings are of great interest since there is evidence of a non-linear relationship between the federal government debt and economic growth, which suggests the optimal level of debt that the government should hold. Hence, the accumulation of federal government debt is positively associated with Malaysia�s economic growth up to an optimal level. While an additional increase in federal government debt beyond the optimal level has inversely contributed to the Malaysian economy. � 2016, Statistical Economic and Social Research and. All rights reserved.