Comparative Analysis of Determinants of Public Debt in Selected Countries of the Western Balkans

Abstract

The excessive accumulation of public debt of many countries in the past few decades, especially in the context of financial instability and low rates of economic growth, has increased the need for a deeper analysis of the factors influencing the dynamics of public debt. The aim of this paper is to identify the impact of specific variables on the level of public debt in selected countries of the Western Balkans. The paper analyzes studies that focus on determinants of public debt, and it defines four fundamental independent variables. The panel data regression model is used to interpret the impact of these variables on the public debt as a dependent variable, while it uses data from 2002 to 2024. The research results provide an empirical basis for a better understanding of the dynamics of public debt and its main drivers and can be significant for policymakers in defining activities aimed at maintaining the stability of public debt.