Public Indebtedness in Developing Cuntries: Romanian Case

In this paper we concerning about the unsustainable level of public indebtedness of developing countries, due the fragile and undeveloped national economy, under different impact factors that may lead to a debt crisis and government insolvency. We analyze the ratio between GDP annual growth rate and public debt annual growth rate as an important indicator able to measure the economic situation at a given time. In addition we consider that public debt composition matters since the external public loaning leads to an export of capital abroad that is affecting growth and economic development of national economy.