Theoretical Foundations of Economic Growth: Determinants, Transformations, and Public Debt Dynamics

Abstract

Economic growth remains one of the central concerns of economic analysis, public policy, and development strategies. It reflects the capacity of an economy to increase its production of goods and services over time, expand national income, improve productive capacity, and create the material conditions for social progress. However, contemporary debates show that growth cannot be understood only through the quantitative expansion of gross domestic product. Its quality, sustainability, distributional effects, institutional foundations, and relationship with public debt must also be considered. This article aims to analyze the theoretical foundations of economic growth by examining its main conceptual definitions, key determinants, structural transformations, limitations, and the role of public debt in growth dynamics. It argues that economic growth depends not only on capital accumulation and labor expansion, but also on productivity, innovation, human capital, institutional quality, governance, and fiscal sustainability. The article further emphasizes that public debt can support growth when it finances productive investment, but it can also weaken long-term performance when it becomes excessive or poorly managed. By adopting a theoretical and analytical approach, this article provides a comprehensive framework for understanding growth as a multidimensional process shaped by economic, institutional, social, and fiscal conditions.

Keywords: Economic growth; development; productivity; public debt; structural transformation; institutions; governance; human capital.

Received Date: December 20, 2025

Accepted Date: January 12, 2026

Published Date: February 01, 2026

Available Online at: https://www.ijsrisjournal.com/index.php/ojsfiles/article/view/879