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.