This paper studies the relationship between public debt and economic growth

for selected emerging markets performing panel data estimations. Several regressor

variables are included, but the main focus is on public debt. The results reveal

a significant positive correlation between public debt and the subsequent growth

rate of per capita GDP. Population and investment also yield a significant positive

influence on subsequent growth, whereas the initial real GDP per capita gives a

negative influence. Other variables such as the inflation rate, the trade balance or

the exchange rate do not render a significant effect with respect to economic growth.