Abstract: Household debt problem is established to have initiated economic slowdown and financial crises resulting in unsustainable global financial stability. High level of household debt may result in emotional and psychological stress as well as social and family predicaments in the domestic economy. This study analyzes the determinants of household indebtedness in eight developing and developed countries in Asia. The study applies econometric analysis to ascertain the significance of the macroeconomic determinants and household characteristics on household debt. Unit root tests were carried out to prevent spurious regression. Empirical evidence suggests major differences in determinants between the two groups of countries. In developing Asian countries, household debt is most affected by macro-economic factors including interest rate, inflation rate and unemployment rate while in developed Asian countries, indebtedness is affected by consumption, working and retirement population as well as household savings.
S.F.Ho. Catherine, Jamaliah Mohd Yusof and Siti Aminah Mainal, 2016. Household Debt, Macroeconomic Fundamentals and Household Characteristics in Asian Developed and Developing Countries. The Social Sciences, 11: 4358-4362.