impact of debt on economic development

– A panel data analysis on the relationship between external debt and economic growth Södertörns högskola Department of economics Magisteruppsats 30 hp  

While the economic growth rate is likely to have a linear negative impact on the public debt-to-GDP ratio, high levels of public debt are also likely to be deleterious 

The impacts of the global economic downturn in the 1980s on developing economies, including the debt crisis, was such that the 1980s is often referred to as the “ 

There, public debt apparently exerts neutral or even positive growth effects, while for Nordic countries a non-linear relationship is discovered, with negative debt 

We examine and evaluate the direct effect of higher indebtedness on economic growth for countries in the EU which are in the epicentre of the current sovereign  

Our results suggest different patterns across EA countries and tend to support the view that public debt always has a negative impact on the long-run performance  

Moreover, poor management in developing countries has resulted in borrowing having a negative impact on both the economic growth and financial sustainability