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This article highlights the main determinants of the economic growth for indebted countries. The reason being is to help future researchers and policymakers to set a priority on the essential variables that assist in stimulating economic growth, especially among the indebted countries. It is because previous researchers include doubtful variables in the growth model that led to biased estimation. Hence, this paper aims to solve the problem by giving guidelines to future researchers and policymakers on the main determinants of economic growth, especially when the countries are facing with high public debt. In light of this, we have conducted a systematic literature review by adopting the Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA). It is to report the findings found from the reliable journal articles downloaded from the Scopus database. The articles derived from the Scopus database were then being identified and screened accordingly based on specific criteria. The articles selected from the identification and screening processes were then being examined individually by looking at the titles, abstracts and the main contents. In the end, only 26 articles that highlight the determinants of the debt-growth model were selected. The review managed to formulate five main themes that represent the determinants of the debt-growth model, namely demographic, capital, government policies, macroeconomic stability and openness. From the five themes, we have generated eleven themes to allow for more detail explanation on each theme. The findings highlight the importance of five main variables in each theme that can help the indebted countries to boost their economic growth. Finally, we propose a few recommendations for future researches and policymakers.
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To cite this article: Abd Rahman, N. H., Ismail, S., Ridzuan A. R. (2020). A Comprehensive Review on the Determinants of Economic Growth for Indebted Countries, International Journal of Academic Research in Accounting, Finance and Management Sciences 10 (2):223-232.
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