Understanding the effect of public debt on economic growth in a country is vital for macroeconomic strategy groundwork and analysis as well as maintaining monetary policies that activate progress and growth. The purpose of this study was to analyse the effects of public debt on economic growth in Zam bia from 2011-2021. The researcher employed Microsoft Excel and E-Views to analyse data. The Autoregressive distributed lags model (ARDL) estimates a re assumed to be relevant in the long-run, and can be used to explain a long-run correlation between variables. It is especially useful for describing the dynamic behaviour of economic time series and forecasting. The study estimated the ARDL comprising Prime Lending Rate, Exchange Rate, External Debt Stock and Domestic Debt Stock as well as the dependent variable Real G ross Domestic Product. The variables incorporated in the econometri c model were; Prime Lending Rate, Exchange rate, External Debt Stock and Domestic Debt Stock. The results from the econometric model revealed that these factors have had a significant impact on economic growth in Zambia from 2011-2021. The results of this study imply that policy makers should ensure that Zambia borrows for production and not for consumption. Borrowing for production would increase Gross Domestic Product (GPD) and consequently real GDP. Thus, the debt would have a positive impact on the economy. There is need for Policy makers to earnestly embark on coming up with a consistent macro-economic database to back more research essential to offer policy guidance.
KeywordsEconomic GrowthExchange RateExternal Debt Stock and Domestic Debt Stock
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