The Political Economy of Governance and Corruption: Implications for Sustainable Economic Growth in Zambia

Abstract

: This study examines the relationship between governance, corruption, and economic growth in Zambia, providing evidence-based policy insights for sustainable economic resilience. Employing a quantitative approach, it analyzes secondary data from 1995 to 2023 using the Autoregressive Distributed Lag (ARDL) bounds testing model to capture short-and long-term interactions between governance, corruption, and growth. Data from the World Development Indicators, Transparency International, Our World in Data, and the Worldwide Governance Indicators were validated through descriptive statistics, stationarity tests, and cointegration analyses. Results indicate that improvements in the rule of law (3.1%), regulatory quality (2.4%), and political stability (5.3%) significantly enhance long-term growth, whereas government effectiveness negatively affects it, signaling structural inefficiencies. Foreign Direct Investment (FDI) stimulates short-term growth (3.8%) but reduces long-term growth (−0.8%). Anti-corruption measures and political stability support short-term gains, offering guidance for institutional strengthening, FDI management, and sustainable development in resource-dependent economies.