Household Debt and Economic Growth: The Role of Institutional Quality Title : Household Debt and Economic Growth: The Role of Institutional Quality Authors : 1. Khairunnisa Abd Samad2. Siti Nurazira Mohd Daud3. Sylva Alif Rusmita3 Department : Ekonomi Islam Journal Name : Pertanika Journal of Social Sciences and Humanities Kinds of Journal : Scopus Q3 Keywords : Bias-corrected LSDV, economic growth, household debt, institutional quality ABSTRACT Household debt has a detrimental effect on economic growth. Thus, this study examines the connection between household debt and growth in institutional quality. The impactof the relationship on economic growth is assessed using a bias-corrected least square dummy variable of 43 nations. We discovered that institutional quality enhances the role ofhousehold debt in sustaining economic growth. Household debt is significantly detrimental to growth when institutional quality is low. Its harmful effect can be lessened with mediuminstitutional quality. Interestingly, higher household debt is beneficial in sustaining growth if accompanied by better institutional quality. Household debt and institutions reinforce each other towards sustaining economic stability for countries with higher institutional quality. The findings are expected to assist central banks and other government authorities in formulating the relevant institutional settings for ensuring economic sustainability, such as prudent debt management and macro-prudential policy. Future studies may consider empirical analysis on a distinct split sample of advanced and emerging economies and employ different estimator methods. For details : http://www.pertanika.upm.edu.my/resources/files/Pertanika%20PAPERS/JSSH%20Vol.%2030%20(3)%20Sep.%202022/03%20JSSH-8426-2021.pdf