A study on the relationship between the government domestic debt towards consumer price index, Kuala Lumpur composite index and interest rate in Malaysia / Mohd Faizul Ibrahim

• Main Author: Ibrahim, Mohd Faizul
• Format: Student Project
• Language: English
• Published: 2006
• Subjects: Interest rates; Investment, capital formation, speculation
• Online Access: https://ir.uitm.edu.my/id/eprint/40895/1/40895.pdf; https://ir.uitm.edu.my/id/eprint/40895/

This study investigates the relationship between the government domestic debt towards consumer price index, Kuala Lumpur Composite Index and interest rate in Malaysia. The estimation period for this study is from 1996 until 2005. In this study, the government domestic debt is considered as the dependent variable while the independent variables are consumer price index, Kuala Lumpur Composite Index and interest rate. In measuring the relationships, Simple Linear Regression Model is used and also adjusted regression model in order to overcome the auto correlation problem. Based on the findings, there is a significant relationship between government domestic debt with consumer price index, no significant relationship between government domestic debt with Kuala Lumpur Composite Index, and there is a significant relationship between government domestic debt with interest rate.