Effects of Globalization, Human Development and Corruption on Economic Growth: Evidence from E7 Economies

This study examines the effects of globalization, human development, and corruption on economic growth in the E7 economies. Using annual data for the period 1995–2022, the Method of Moments Quantile Regression (MMQREG) is applied to evaluate the dynamic structure of growth under different conditions. Empirical findings indicate that human development has a strong and positive impact on economic growth across all quantiles. While globalization affects economic growth negatively only in high-growth quantiles, no statistically significant effect has been found in low- and middle-growth quantiles. In contrast, whereas the rise in corruption perception adversely affects growth more strongly in the lower and intermediate quantiles, the strength of this effect diminishes considerably in the upper quantiles. Foreign direct investment and other control variables also contribute differentially across quantiles, demonstrating a heterogeneous structure in growth dynamics. This study concludes that economic growth in the E7 nations can be attained through enhanced human development, effective anti-corruption measures, the formulation of robust global integration policies, and the attraction of technology-driven foreign investment. The MMQREG methodology significantly enhances the literature by illustrating that, even among countries with similar economic development, the distribution of policy effects can differ depending on context and level.