Distinct debt-growth dynamics are identified for commodity-exporting and non-commodity-exporting developing countries. Commodity-exporting countries exhibit debt thresholds declining from 62.14 % (1981–2000) to 53.83 % (2001–2019). Non-commodity-dependent economies show a debt threshold only after 2001, at 67.96 % of GDP. Institutional quality, capital investment, exchange rate flexibility, and trade openness mitigate growth constraints. Results highlight the unique challenges for resource-dependent economies in leveraging debt for sustainable growth. […]