Quantile nexus between human development, energy production, and economic growth: the role of corruption in the case of Pakistan

Abstract

This paper examines the quantile cointegration relation between human development, energy production, and economic growth by incorporating corruption into the model for Pakistan through Quantile Autoregressive Distributed Lag (QARDL) model covering the period from 1965 to 2016. The research findings indicate that the association is quantile dependent which provides some exciting results. The Wald test is applied that rejects the null hypothesis and confirms the short- and long-run relationship between the variables. The changes in human development and economic growth are responsible for past and current changes in energy production and corruption that is confirmed through the Error Correction Model (ECM). This paper provides some interesting findings that energy production is contributing positively to human development. Further, energy production contributes negatively to economic growth, while corruption contributes positively to economic growth. These findings will help to make policy measures such as environmental regulation to improve energy efficiency and anti-corruption policies which will improve income level and economic growth of Pakistan economy.

Nexus between Technological Innovation, Renewable Energy, and Human Capital on the Environmental Sustainability in Emerging Asian Economies: A Panel Quantile Regression Approach

“…Other studies also found a positive relationship between corruption and environmental damage as in Rehman et al [47] (South Asian countries) and Sinha et al [2] (BRICS). Some studies found significant results at high quantiles as in Luqman et al [27] for the case of Pakistan, while others did not find any significant results, as in Azam and Khan [6] for the case of Malaysia, Indonesia, and Thailand, or Haldar and Sethi [10] for a sample of developing countries. One possible explanation is linked to the improvement in the corruption control index that was observed in the Asian countries covered in this study.…”

“…In Southeast Asia, Azam and Khan [6] found a significant impact of corruption on the effort to reduce CO 2 in Malaysia, but not in Thailand and Indonesia. Applying quantile regression, Luqman et al [27] found that anticorruption policies and human capital improvements supported environmental sustainability in Pakistan. Studies covering China, India, and other emerging countries tended to support that improvements in governance can moderate energy consumption [2,5,10].…”

An Analysis of Electricity Generation, Supply, and Economic Growth in Selected SADC Countries

“…Abbasi et al (2021), Zeshan (2013), and Shahbaz and Feridun (2012) employed a DARDL, VECM, and log linear ARDL models respectively and discovered that electricity consumption positively influences economic growth in Pakistan and recommend better integration electricity generation and management with the planning of economic policies to increase economic growth. However, Luqman et al (2021) with QARDL found negative relationship between electricity generation and economic growth in Pakistan. Chang (2010), Wang et al (2011), Cheng et al (2013), andCheng et al (2019) all found that electricity generation and consumption positively influences economic growth in China supporting the electricity leg growth notion.…”

The Dynamic Impacts of Economic Growth, Financial Globalization, Fossil Fuel, Renewable Energy, and Urbanization on Load Capacity Factor in Mexico

“…Following the identification of the long-term connections, to look into the shortterm behavior of the independent variables and the short-term adjustment rate toward the long-term rate, this study evaluated the error correction model (ECM). The ECM is integrated into the ARDL structure to accomplish this goal [68], illustrated in Equation ( 6), where θ is the ECM's coefficient. The equation shows how the series are linked across time and how error-correction dynamics work.…”