Impact of Financial Development, Renewable Energy, and Natural Resources on Macroeconomic Performance in Pakistan

The objective of this study is to investigate the impact of financial development, renewable energy consumption, and natural resources on macroeconomic performance in Pakistan. The study employs the autoregressive distributive lag (ARDL) technique to check the association among the selected variables. Macroeconomic performance is dependent and financial development, renewable energy, natural resources, and human capital uses as independent variables in this study. Data taken from the World Development Indicator (WDI) range from 1990 to 2023. Unit root tests Augmented Dickey-Fuller and Phillips Parron employs to check the variable's stationarity. The results found that in the short run natural resources has negative and insignificant and renewable energy has a negative but significant impact on macroeconomic performance. However financial development and human capital have positive and significant impacts on macroeconomic performance. In the long run financial development, renewable energy, natural resources, and human capital have a positive and significant impact except human capital on macroeconomic performance in Pakistan.