THE IMPACT OF PUBLIC DEBT AND MACROECONOMIC DETERMINANTS ON ECONOMIC GROWTH IN DEVELOPING ECONOMIES
THE IMPACT OF PUBLIC DEBT AND MACROECONOMIC DETERMINANTS ON ECONOMIC GROWTH IN DEVELOPING ECONOMIES

Summary/Abstract: This study examines the impact of public debt and key macroeconomic determinants on the economic growth of developing economies, measuring economic stability through annual GDP growth. The econometric model includes seven independent variables: public debt, trade openness, government expenditures, foreign direct investment, inflation, gross capital formation, and population growth. The analysis relies on secondary data from 20 countries over the period 2009–2023, processed using SPSS and Excel. The results indicate that government expenditures negatively affect economic growth, highlighting the need for fiscal discipline and careful management of public debt. In contrast, investments in gross capital formation and population growth have a favorable, sustainable effect on long-term economic growth. Public debt, trade openness, FDI, and inflation have varying impacts across countries, depending on each country’s specific structure. The study provides practical guidance for policymakers, emphasizing the importance of balanced fiscal management, the promotion of productive investments, and policies that support sustainable population growth. The findings contribute to the literature on economic development and public debt, offering an empirical framework for effective decision-making in developing economies.

• Details
• Contents