Abstract:
This study aimed to examine the impact of money laundering on economic development in
Sub-Saharan Africa. The Basel Index, levels of corruption, the strength of legal rights, the
depth of credit information, the informal economy, and foreign direct investment were the
main independent variables used to measure money laundering in the study.
The tests carried out as part of this research indicated a negative relationship between
economic development and each of the independent variables, the Basel Anti Money
Laundering Index, and the Informal Economy. On the other hand, there is an insignificant
relationship between economic development and the strength of Legal Rights. Also, a
positive relationship exists between each of the corruption scores, the Depth of Credit
Information, and Foreign Direct Investment. This was supported by the Generalized Method
of Moments (GMM) in addition to Pooled Ordinary Least Squares (POLS) and Random
Effects (RE) models by two dependent variables: GDP Per Capita and Human Development
Index
