The Relationship Between External Debt and Economic Growth

The main objective of this study is to determine the effect of external debt on economic growth. This article analyzed the empirical literature on the relationship between economic growth and public external debt and the impact of public external debt on economic growth. Thus, through the analysis of the literature on the impact of external debt on economic growth, it was found that the impact of external debt on economic growth can have positive, negative and non-linear relationships. There are three groups of theoretical models describing this interaction.