Review of literature

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Intern. Journal of Profess. Bus. Review. |Miami, v. 8 | n. 4| p. 01-11 | e01772 | 2023. 
1 
 
THE INFLUENCE OF PUBLIC DEBT ON ECONOMIC GROWTH: A REVIEW OF 
LITERATURE 
 
 
Ismail Yamin
A
, Omar Al_Kasasbeh
B
, Amro Alzghoul
C
, Ghaith Alsheikh 
D
 
 
ARTICLE INFO 
ABSTRACT
Purpose:
This paper conducts a thorough examination of the theoretical and empirical 
literature on the influence of public debt on economic growth in both developed and 
developing economies. The drive of this research is to determine whether there is 
mutual agreement on the effects of public debt on economic growth in global 
economies.
Design/methodology/approach:
A literature review approach is adopted, and the 
current implications and future directions are explored based on theoretical and 
empirical analyses. 
Findings:
The investigation uncovers a range of contradictory information on the 
relative influence of public debt on economic growth. Although most of the literature 
reviewed supports the negative impact of public debt on economic growth, several 
other studies have found a long-run affirmative influence of public debt on economic 
growth via the fiscal multiplier effect. The article also uncovered that a few more 
research back up the Ricardian Equivalence Hypothesis (REH), which claims that 
there is no relationship between public debt and economic growth. Overall, it indicates 
that theoretical models and empirical studies produce indecisive outcomes based on a 
variety of criteria such as the level of development of the sampled nations, the 
methodology utilized, data coverage, and the researchers' choice of control variables, 
among others.