Abstract
This study examines the relationship between financial development, human capital, and economic growth in the ASEAN and SADC regions, using a Panel Autoregressive Distributed Lag (PARDL) model to analyse data from 1980 to 2019. The results, based on the full-sample analysis, reveal that human capital has a positive and significant long-run impact on economic growth, while financial development has a negative longrun effect. However, the interaction between financial development and human capital positively influences growth, highlighting their complementary roles. The sub-sample analysis reveals significant regional differences between ASEAN and SADC, emphasising the need for region-specific studies to formulate accurate and tailored policy recommendations. The results show that the interaction between financial development and human capital has a significant impact on economic growth in both ASEAN and SADC regions. In ASEAN, financial development alone has a negative effect, but when combined with human capital, it has a positive effect. In SADC, human capital is the primary driver of economic growth, with financial development playing a supportive role. The study contributes to the literature by providing a comparative analysis of ASEAN and SADC, offering insights into the factors driving economic success in each region and identifying potential strategies for fostering economic growth. The findings have implications for policymakers, highlighting the importance of investing in human capital and considering the interplay between financial development and human capital in shaping economic outcomes.