Effect Of Consumption, Credit, And Capital Expenditure On Growth Economy In South East Asia

English

Abstract

This study investigates consumption, credit and government expenditure in the Southeast Asia region. The time period used in this study is the 2000-2021 period. The sort of data used in this study is panel data, which is secondary data. Data that is received from organizations or other parties is known as secondary data. The form of data can be obtained from publications presented by the parties concerned. The Panel Least Square (PLS) technique was used to analyze secondary data from the World Bank for this study. Although the PLS method is a variation of OLS, the data are presented as panels. The test results using the Panel Least Square (PLS) method show that credit and government spending are the dominant factors in driving economic growth in Southeast Asia. However, credit has actually become a burden for economic growth in Southeast Asia. The increase in debits in Southeast Asia actually put pressure on the economy, this was caused by an imbalance between the real and monetary sectors. However, government expenditure and domestic consumption have given a boost to production from the demand side so as to encourage an increase in national production which in turn boosts economic growth as indicated by an increase in GDP.