Impact of Public Debt on Economic Growth-Case of the Republic of Kosovo

This paper aims to investigate the impact of public debt on the economic growth of the Republic of Kosovo through an econometric analysis using quarterly data for the available years from 2013 until 2022. The research data used in this paper originates from the Ministry of Finance of the Republic of Kosovo and the Kosovo Statistical Agency, using variables such as GDP per capita, Central Government Debt, and Government Spending in Euro units. The econometric analysis provides statistically significant variables in the long-run, thus confirming the validity of the long-run relationship between Public debt and the GDP. Such, confirms the Keynesian theory that the public debt impacts positively the economic growth in our case. Ultimately, the government is ought to use a well-planned investment and fiscal responsibility with attention to the acquired debt.