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.
•Natural resource rents help the United States grow economically.•Gross fixed capital formation has a greater influence on the United States' economic development than any other element.•The United States has decreased financial risks, which has a favorable influence on its economic growth.•In the United States, patents filed by residents and non-residents have a favorable impact on ED.