How does public debt affect economic growth? A systematic review

The controversial findings by Reinhart and Rogoff have continuously generated debates on the threshold of debt towards GDP. Hence, the aim of this study is to examine whether there exists mutual consensus on the effects of public debt on the economic growth of a country or group of economies. A syst...

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Autores principales:	Nur Hayati Abd Rahman, Shafinar Ismail, Abdul Rahim Ridzuan
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2019
Materias:	public debt economic growth systematic review prisma Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/0301b300bf2f4348a9b9c1ebb4c2a1c4
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spelling	oai:doaj.org-article:0301b300bf2f4348a9b9c1ebb4c2a1c42021-12-02T16:09:31ZHow does public debt affect economic growth? A systematic review2331-197510.1080/23311975.2019.1701339https://doaj.org/article/0301b300bf2f4348a9b9c1ebb4c2a1c42019-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2019.1701339https://doaj.org/toc/2331-1975The controversial findings by Reinhart and Rogoff have continuously generated debates on the threshold of debt towards GDP. Hence, the aim of this study is to examine whether there exists mutual consensus on the effects of public debt on the economic growth of a country or group of economies. A systematic review on related articles from SCOPUS database was conducted by adopting a standard procedure in the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA), namely identification, screening and eligibility. Thirty-three articles were chosen as the main articles to be reviewed. It was found that there is no mutual consensus on the relationship between public debt and economic growth. The relationship can be positive, negative or even non-linear. Besides, the 90% threshold as argued in the Reinhart-Rogoff hypothesis is also not applied across all countries. The findings may help governments and policymakers to design their fiscal policy by investigating how existing debts affect the growth level. Future studies should investigate the effects of public debt on the economic growth in the upper-middle-income economies. These economies were least studied in this context.Nur Hayati Abd RahmanShafinar IsmailAbdul Rahim RidzuanTaylor & Francis Grouparticlepublic debteconomic growthsystematic reviewprismaBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 6, Iss 1 (2019)
institution	DOAJ
collection	DOAJ
language	EN
topic	public debt economic growth systematic review prisma Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	public debt economic growth systematic review prisma Business HF5001-6182 Management. Industrial management HD28-70 Nur Hayati Abd Rahman Shafinar Ismail Abdul Rahim Ridzuan How does public debt affect economic growth? A systematic review
description	The controversial findings by Reinhart and Rogoff have continuously generated debates on the threshold of debt towards GDP. Hence, the aim of this study is to examine whether there exists mutual consensus on the effects of public debt on the economic growth of a country or group of economies. A systematic review on related articles from SCOPUS database was conducted by adopting a standard procedure in the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA), namely identification, screening and eligibility. Thirty-three articles were chosen as the main articles to be reviewed. It was found that there is no mutual consensus on the relationship between public debt and economic growth. The relationship can be positive, negative or even non-linear. Besides, the 90% threshold as argued in the Reinhart-Rogoff hypothesis is also not applied across all countries. The findings may help governments and policymakers to design their fiscal policy by investigating how existing debts affect the growth level. Future studies should investigate the effects of public debt on the economic growth in the upper-middle-income economies. These economies were least studied in this context.
format	article
author	Nur Hayati Abd Rahman Shafinar Ismail Abdul Rahim Ridzuan
author_facet	Nur Hayati Abd Rahman Shafinar Ismail Abdul Rahim Ridzuan
author_sort	Nur Hayati Abd Rahman
title	How does public debt affect economic growth? A systematic review
title_short	How does public debt affect economic growth? A systematic review
title_full	How does public debt affect economic growth? A systematic review
title_fullStr	How does public debt affect economic growth? A systematic review
title_full_unstemmed	How does public debt affect economic growth? A systematic review
title_sort	how does public debt affect economic growth? a systematic review
publisher	Taylor & Francis Group
publishDate	2019
url	https://doaj.org/article/0301b300bf2f4348a9b9c1ebb4c2a1c4
work_keys_str_mv	AT nurhayatiabdrahman howdoespublicdebtaffecteconomicgrowthasystematicreview AT shafinarismail howdoespublicdebtaffecteconomicgrowthasystematicreview AT abdulrahimridzuan howdoespublicdebtaffecteconomicgrowthasystematicreview
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How does public debt affect economic growth? A systematic review

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