Pre-COVID-19 evaluation of external debt, corruption and economic growth in South Africa

Purpose This study is a pre-COVID-19 exposition of the existing situation about external debt-GDP relationship, incorporating corruption into hypothesis, making South Africa object study. The aim to examine causal relationship between corruption, economic growth and debt, in end proffer solutions problems arising therefrom. Design/methodology/approach employed ARDL technique on time series data running from 1990 2019 with real gross domestic product as dependent variable debt servicing, inflation capital formation regressors. Necessary tests that include unit root, cointegration, CUSUM CUSUMSq, normality, serial correlation heteroscedasticity were performed model. Findings shows servicing exert negative influences while effect investment was positive. External debt's short run positive its long-run negative. Among other things, need improve strengthen public institutions addition targeting tax evaders avoiders for increased government revenue emphasized. Originality/value incorporates country specific debate against earlier studies excluded their analysis or cross-country based. authors also exposit knowledge hypothesis before outbreak COVID 19 pandemic. expected serve precursor subsequent rising during after