<![CDATA[Persistent deficits in the balance of payments (BoP) may limit the ability of developing countries to sustain long-term economic growth. This study synthesizes the development of theory, empirical evidence, and the mechanisms through which balance-of-payments constraints affect economic growth within the Balance-of-Payments-Constrained Growth (BPCG) framework, with particular attention to Indonesia and Southeast Asia. A Systematic Literature Review (SLR) was conducted following the PRISMA 2020 guidelines. Searches of five electronic databases (2016–2026) yielded 450 records; after the identification, screening, eligibility (including quality appraisal), and inclusion stages, 20 unique studies were thematically synthesized, eight of which concern Indonesia or Southeast Asia. The findings indicate that the BPCG framework and Thirlwall's Law remain relevant for explaining how the external sector limits growth across different levels of economic development. The income elasticities of demand for exports and imports are the core components, which are shaped by export structure, import dependence (including intermediate goods), exchange rates, capital flows, innovation, and structural change. Studies on Indonesia reveal different short-run and long-run patterns, including a J-Curve phenomenon. The literature also shows considerable heterogeneity in methods and model specifications, so cross-study comparisons should be made with caution. This review recommends strengthening export capacity, distinguishing productive from consumption imports, monitoring the BPCG growth limit, and estimating sectoral and time-varying income elasticities with contemporary econometric methods (e.g., ARDL and panel cointegration) for Indonesia and Southeast Asia.]]>
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