Abstract
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.
Details
| Other ID | JA24BH38NV |
|---|---|
| Journal Section | Research Article |
| Authors | |
| Publication Date | September 1, 2017 |
| Published in Issue | Year 2017 Volume: 7 Issue: 3 |