Abstract
Natural resources' involvement in fostering economic and financial activity is critical for economic development (ED) of a country. Current research employed time series data from 1990 to 2020 to examine total natural resource rents, domestic investment, financial risk index, patents by residents and non-residents, and their influence on ED in the United States. For unit root analysis, the study used an upgraded Dickey-Fuller technique and a Bayer-Hanck cointegration approach that works quite well with varying orders of integrated variables. In addition, the study employed dynamic ordinary least squares (DOLS) and completely modified ordinary least squares (FMOLS), which adjust for endogeneity and serial correlation. The findings reveal that overall natural resource rentals significantly boost the economy's ED. Domestic investment in gross fixed capital formation (GFCF) has substantially supported economic activity. At the same time, improvements in the FRI of the United States as a result of sustained ED indicate a beneficial influence on ED. Finally, the number of patents filed by residents and non-residents positively affects ED in the United States.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
