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Financial market risk and innovation nexus with growth: Channelizing the role of natural resources volatility for United States

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  • Ye, Xinyu
  • Lin, Runtian

Abstract

This study examines the impact of total natural resources, financial risk, technological innovation, and investment on the economic growth of the US economy for the period of 1988–2020. To estimate the model over a continuous time period, we use the quantile regression (QR) method. It is concluded that there is a significant beneficial effect that total natural resources have on GDP at all three quantiles. As a result, it can be deduced that total natural resources have a positive correlation with the expansion of the economy in the next year across all quantiles. In addition, the FMOLS approach is utilized in this study in order to perform a robustness check. When contrasted, the econometric methodologies of quantile regression and FMOLS produce results that are comparable. The results ensure useful policy recommendations relevant to natural resources management and risk from the financial market.

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  • Ye, Xinyu & Lin, Runtian, 2023. "Financial market risk and innovation nexus with growth: Channelizing the role of natural resources volatility for United States," Resources Policy, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:jrpoli:v:81:y:2023:i:c:s0301420722007103
    DOI: 10.1016/j.resourpol.2022.103267
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