The neoclassical growth model is augmented with structural variables to analyse the determinants of economic growth in the Southern African Development Community. The results show that physical capital, exports, infrastructure, and human capital have a positive and significant effect on economic growth. However, inflation and external debt service have a negative but significant impact on economic growth in the region. In addition, the results suggest that the underdevelopment of the financial sector is a source of heterogeneity among member countries. Therefore, to promote growth and deeper integration in the region, it is necessary to address the underlying causes of inflation, debt, and the underdevelopment of the financial sector.
Mupimpila, Chris and Funjika, Patricia
"Growth and Regional Integration: The Case of the Southern African Development Community,"
Zambia Social Science Journal: Vol. 1
, Article 5.
Available at: http://scholarship.law.cornell.edu/zssj/vol1/iss2/5