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

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