Problematic Public Debt in Jordan

Abstract

Current research aims to highlight the impact of public debt on the Jordanian economy exploring whether public debt is problematic for the Jordanian economy. For this purpose, a systematic review is conducted based on the previous relevant articles selected from the SCOPUS database. Based on the process of classification, selection, and eligibility process of thirty-one articles are finally included as the leading articles being reviewed by the current research. This review helped generate an opinion about the impact of public debt (PD) on economic growth (EG) in light of previous literature and then discussing these findings in the context of the Jordanian economy highlighted the impact of Jordanian public debt. The findings indicate that although there are contrary views reported in the literature about the relationship of public debt with different economic factors and especially economic growth, the context of Jordan’s public debt is problematic for the Jordanian economy. The current study has significant implications for government officials and policymakers so that they can plan accordingly keeping in mind the negative impact of public debt.