Urban Expansion, Governance, and Environmental Quality: Decoding the Drivers of Human Development in SADC Countries (2000-2020).

Abstract

Human Development Index (HDI) serves as a crucial measure of socio-economic progress, yet the nuanced relationships between HDI and key factors such as economic growth, urbanization, institutional quality, environmental pollution, and corruption control remain underexplored. This study examines the impact of economic growth, urban development, institutional quality, environmental pollution and control of corruption on HDI in the Southern African Development Community (SADC), a region with diverse economic and social challenges. To achieve this, the study employs advanced econometric techniques, specifically the Dynamic Common Correlated Effects (DCCE) and Augmented Mean Group (AMG) estimators. This research analyzes panel data spanning from 2000 to 2020 across 16 SADC countries, addressing cross-sectional dependence and heterogeneous slopes. The findings indicate that economic growth has a consistently positive impact on HDI in several countries, including Botswana, Comoros, Eswatini, Lesotho, Madagascar, Malawi, and the overall panel emphasizing its vital role in enhancing human development. Urbanization effects vary, with both positive and negative outcomes observed in countries like Zimbabwe and Seychelles. Institutional quality is positively linked to HDI in Lesotho and Mauritius, reinforcing the importance of effective governance. Environmental pollution shows a complex impact, benefiting HDI in Angola but impairing it in Zimbabwe. Corruption control also exhibits mixed effects, with negative impacts on HDI in Lesotho and Seychelles. This study highlights the need for tailored policy interventions that address specific regional and national contexts. It recommends enhancing institutional quality and tackling environmental pollution to promote sustainable human development across the SADC region.