External debt, corruption control, and economic prosperity in the SADC region
External debt, corruption control, and economic prosperity in the SADC region

Summary/Abstract: This study investigates the impact of external debt and corruption control on the economicprosperity of Southern African Development Community (SADC) countries, using the LegatumProsperity Index as a comprehensive measure encompassing nine dimensions. The study employsvarious estimation techniques, including Driscoll-Kraay, instrumental variables, quantile-on-quantile regressions, and the Granger causality test. The findings indicate that external debtpositively influences economic prosperity in the SADC region. Additionally, effective corruptioncontrol enhances this prosperity. Causality tests reveal a bidirectional relationship between externaldebt, economic prosperity, and corruption control. The study recommends strengthening anti-corruption agencies, initiating open data policies, implementing market reforms, and pursuingfiscal consolidation to promote debt sustainability and foster prosperity within the SADC region.

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