Document Type : ORIGINAL ARTICLE
Authors
Department of Economic, Faculty of Management and Economics, Lorestan University, Khoram Abad, Iran.
Abstract
This study examines the heterogeneous effects of financial development, the energy trilemma index, and economic complexity on economic growth in N11 countries during 2000–2023. Using the Method of Moments Quantile Regression (MMQR), the analysis captures how these factors affect different points of the growth distribution. The Pesaran slope homogeneity test rejected coefficient homogeneity, validating the MMQR approach. To ensure robustness for average effects, additional estimations were conducted using Panel Corrected Standard Errors (PCSE), Driscoll-Kraay, and Feasible Generalized Least Squares (FGLS). Results from MMQR indicate substantial heterogeneity: financial development and urbanization positively and significantly affect growth across most quantiles, though the impact of urbanization slightly weakens at higher quantiles. Renewable energy consumption, the energy trilemma index, and economic complexity show stronger positive effects in the lower and middle quantiles, whereas foreign direct investment becomes more influential in higher quantiles. Robustness checks confirm the general positive and significant influence of all variables on growth. The findings highlight the importance of tailored policy approaches: countries with lower growth should prioritize improving the energy trilemma, enhancing economic complexity, and expanding renewable energy, while those with higher growth should focus on attracting foreign investment and strengthening financial systems. These insights underscore the need for differentiated growth strategies aligned with each country’s position in the growth distribution.
Keywords
- Economic Growth
- Emerging N11 Countries
- Method of Moments Quantile Regression (MMQR)
- Energy Trilemma
- Economic Complexity
Main Subjects
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