Foreign public debt and regional economic growth: A systematic literature review and research Agenda

The study analyzes the relationship between public debt and regional economic growth using peer-reviewed publications selected via the PRISMA framework. The literature synthesis suggested a negative relationship between high public debt and economic growth in both advanced, emerging and low-income countries. This relationship is predominantly pronounced in regions where institutional capacity is limited and debt management practices are deficient. Conversely, emerging markets exhibit weaker and more inconsistent effects, highlighting the necessity for country-specific debt assessments. The study emphasizes that debt outcomes are contingent on the broader macroeconomic context, the quality of governance, and the institutional framework. It calls for more spatially informed research to capture regional spillovers and to guide tailored, sustainable debt strategies for policymakers.