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VOL. 7, ISSUE 4 (2025)

Unravelling the dynamics: Exploring key factors influencing the debt-to-GDP ratio of an economy

Authors

Bindu

Abstract

The objective of this study is to examine the dynamics of public debt, taking into consideration both its potential to boost national growth and the point at which it becomes an obstacle rather than a help. The main aim is to identify the important variables impacting the level of public debt and analyse how these variables fluctuate over time. The choice of macroeconomic indicators was the result of reading various research articles and utilizing theoretical knowledge.

After observing data from 10 countries worldwide spanning from 2011 to 2022, our findings indicate that the debt-to-GDP ratio is significantly impacted by Government Expenditure, Savings, Inflation Rate, Net Lending, and Openness of the country. Real GDP Growth Rate, Corruption, and FDI also positively affect the Debt to GDP ratio whereas it is negatively affected by the Unemployment rate.

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Pages:70-77

How to cite this article:

Bindu "Unravelling the dynamics: Exploring key factors influencing the debt-to-GDP ratio of an economy". International Journal of Commerce and Economics, Vol 7, Issue 4, 2025, Pages 70-77

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