The Impact of Corruption on Economic Growth in SADC

Darlington Chizema (), Ramos Emmanuel Mabugu and Christelle Meniago
Additional contact information
Darlington Chizema: Department of Accounting and Economics, Faculty of Economic and Management Sciences, Sol Plaatje University, Central Campus, C003 Economics and Management Sciences Building, 26 Scanlan Street, Kimberley 8301, South Africa
Ramos Emmanuel Mabugu: Department of Accounting and Economics, Faculty of Economic and Management Sciences, Sol Plaatje University, Central Campus, C003 Economics and Management Sciences Building, 26 Scanlan Street, Kimberley 8301, South Africa
Christelle Meniago: Department of Accounting and Economics, Faculty of Economic and Management Sciences, Sol Plaatje University, Central Campus, C003 Economics and Management Sciences Building, 26 Scanlan Street, Kimberley 8301, South Africa

Economies, 2025, vol. 13, issue 4, 1-14

Abstract: This study analyses the long-term impacts of corruption on economic growth within the Southern African Development Community (SADC) region, using data spanning 2005 to 2022. Through econometric modelling covering SADC countries, the research investigates the influence of corruption on the economic performance of the region. Employing descriptive statistics, panel unit root tests, and the autoregressive distributed lag pooled mean group model, the findings demonstrate that corruption, human capital, gross capital formation, trade openness, and government effectiveness significantly affect economic growth, whereas foreign direct investment does not. Corruption is believed to hinder economic progress by contributing to inefficient resource distribution, emphasising the need for robust anti-corruption strategies. Besides targeted anti-corruption measures, the research advises broader approaches such as enhancing institutional abilities, promoting transparency and accountability, and encouraging international cooperation. Advancing regional integration and leveraging technology to monitor and report corruption are also crucial. Moreover, promoting trade openness and human capital development can enhance economic growth. These comprehensive approaches aim to create a more transparent and efficient setting, ultimately boosting SADC’s economic growth.

Keywords: economic growth; corruption; development; ARDL; SADC (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7099/13/4/106/pdf (application/pdf)
https://www.mdpi.com/2227-7099/13/4/106/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:13:y:2025:i:4:p:106-:d:1631749

Access Statistics for this article

Economies is currently edited by Ms. Hongyan Zhang

More articles in Economies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().