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VOL. 11, ISSUE 6 (2025)
Democracy and Economic Growth in Lesotho: An Analysis of Long-Run relationship from 1994 to 2024
Authors
Fusi Talasi
Abstract
This study investigates the impact of
democratic governance on economic growth in Lesotho from 1994 to 2024,
addressing the gap in empirical evidence on how political institutions
influence long-term economic performance. Using the Autoregressive Distributed
Lag (ARDL) approach, the study examines the long-run dynamics among the
variables. The results reveal a long-run cointegration relationship, indicating
that democracy is positively and significantly associated with economic growth.
Sustained democratic governance over long periods appears to support improved
economic performance. However, democracy alone is not sufficient to drive
growth; it functions as a platform that facilitates other growth-enhancing
factors. The macroeconomic control variables, including foreign direct
investment, human capital, trade, and external debt, were generally
insignificant or showed divergent effects on growth. Based on these findings,
the study recommends that policymakers implement targeted reforms in human
capital development, trade policies, fiscal management, and innovation-driven
industries to enhance the effectiveness of growth-promoting strategies and
support sustainable and inclusive economic development.
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Pages:65-69
How to cite this article:
Fusi Talasi "Democracy and Economic Growth in Lesotho: An Analysis of Long-Run relationship from 1994 to 2024". International Journal of Humanities and Social Science Research, Vol 11, Issue 6, 2025, Pages 65-69
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