A Study on the relationship between debt and economic gowth in ASEAN+3 countries

This research study investigates the relationship between debt and economic growth among the ASEAN5+3 countries together with other economic variables that affect economic growth such as: (1) foreign direct investment (2) tax revenues and (3) inflation. This paper aims to find out how debt affects economic growth after it reaches a certain level. The study provides supporting data through the results obtained through the averaging of the debt ratio for each country. Data, which was gathered from various sources, for all of the variables cover 30 years from year 1980 up to year 2010. Comparisons were made after each country for each regime to be able to determine if a countrys economic growth decreases after going over a certain level of debt. The results show that an increasing level of debt causes a countrys economic growth to move at a decreasing rate. But this does not entail a negative perception automatically due to the existence of proper budget allocations, which in return can stimulate positive growth for a country