The Cointegration Relationship between Patent, Domestic Investment and Economic Growth in United States of America

Othmani, Abdelhafidh and Ben Yedder, Nadia and Bakari, Sayef (2023): The Cointegration Relationship between Patent, Domestic Investment and Economic Growth in United States of America.

Abstract

This empirical paper searched the three way-linkage between patent, domestic investment, and economic growth in the case of USA during the period 1980 – 2020. By using cointegration analysis and VECM Model, we found that there is no causal relationship between the three variables in the long run. However, we found that domestic investment and economic growth cause patent in the short run. which explains why patents are not a source of economic growth and domestic investment in America and that there are other determinants that have stimulated American economic activity.

• Item Type: MPRA Paper
• Language: English
• Keywords: Cointegration, Patent, Domestic Investment, Economic Growth, United States of America.
• Subjects: D - Microeconomics > D2 - Production and Organizations > D23 - Organizational Behavior ; Transaction Costs ; Property Rights; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E22 - Investment ; Capital ; Intangible Capital ; Capacity; G - Financial Economics > G3 - Corporate Finance and Governance > G31 - Capital Budgeting ; Fixed Investment and Inventory Studies ; Capacity; H - Public Economics > H5 - National Government Expenditures and Related Policies > H54 - Infrastructures ; Other Public Investment and Capital Stock; I - Health, Education, and Welfare > I2 - Education and Research Institutions > I28 - Government Policy; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O51 - U.S. ; Canada

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