 PUBLIC DEBT SERVICE AND ECONOMIC GROWTH: A SURVEY OF INTERNATIONAL LITERATURETalknice Saungweme and Nicholas Odhiambo Applied Econometrics and International Development, 2018, vol. 18, issue 2, 129-142 Abstract: This paper provides a comprehensive survey of the analytical arguments and empirical evidence on the impact of public debt service on economic growth, in both developing and developed countries. Although most of the literature reviewed supports the classical view that public debt service negatively affects economic growth, a few other empirical findings revealed that the link between these two macroeconomic variables is non-existent. On the whole, the paper concludes that the impact of public debt service on economic growth is dependent on the size, structure and composition of both domestic and foreign public debt. Therefore, in a wider macroeconomic setting for public policy, governments are encouraged to ensure that both the level and rate of public debt growth is primarily sustainable, and can be serviced in a manner which lessens economic, political and social costs. Keywords: Public debt service; Economic growth; Literature survey. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eaa:aeinde:v:18:y:2018:i:2_9 Ordering information: This journal article can be ordered from Access Statistics for this article More articles in Applied Econometrics and International Development from Euro-American Association of Economic Development |
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