Econometric equation, Microeconomics

Assignment Help:

This research will follow the methodology of econometrics; Chao, 2005; Castle & Shephard, 2009):

1. Specification of the model using a specific stochastic equation, together with a priori theoretical expectations about the sign and size of the parameters of the function.

2. Data collection on the variables of the model and estimation of the coefficients of the function using appropriate econometric techniques.

3. Evaluation of the estimated coefficients of the function based on economic statistical and econometric criteria.

 The study will follow the econometric procedure to analyze the relationship between FDI, imports and exports, and respective equations.  For bivariate models related to FDI and imports and FDI and exports, the model will investigate relationships following the equations:

 ( 19) (20) (21)  EXP = βn + βn+1 INV + u,

            where EXP is exports from the technology sector, INV is Foreign Direct Investment or Domestic Investment to the technology sector, βn the unknown constant parameter, parameter βn+1 is the slope coefficient, and u is the random disturbance, error, or stochastic term.

(22) (23) (24)  IMP = βn - βn+1 INV + u,

            where IMP is imports from the technology sector, INV is Foreign Direct Investment or Domestic Investment to the technology sector, βn the unknown constant parameter, parameter βn+1 is the slope coefficient, and u is the random disturbance, error, or stochastic term.

For multivariate models related to FDI and imports and FDI and exports, the model will investigate relationships following the equations:

(25)  EXP = βn + βn+1 INV. + βn+2INVN-U.S. + βn+3 INV   + u,

            where EXP is exports from the technology sector, INV is investment to the technology sector and βn, βn+1, βn+2, and βn+3 are the unknown constant parameters. The parameters βn+1, βn+2, and βn+3 are the slope coefficients, and u is the random disturbance, error, or stochastic term.

 (26)  IMP= βn + βn+1 INV - βn+2INV - βn+3 INV   + u,

            where IMP is imports from the technology sector, INV is investment to the technology sector, and βn, βn+1, βn+2, and βn+3 β1, β2, β3 and β4 are the unknown constant parameters. The parameters βn+1, βn+2, and βn+3 are the slope coefficients, and u is the random disturbance, error, or stochastic term.


Related Discussions:- Econometric equation

Should the Government Provide National Health Insurance, What is meant by t...

What is meant by the multifaceted nature of the U.S. health care system? How is health care financed in the U.S.? What is the advantage and disadvantage of the U.S. multi-payer sys

Describe the trade triangles, Steel and aluminum production Steel Canada 50...

Steel and aluminum production Steel Canada 500, France 1200 Aluminum Canada 1500, France 800 The maximum amount of steel or aluminum that Canada and France can produce if they full

Applied Economics Homework Need Answers, Florida citrus mutual, an agricult...

Florida citrus mutual, an agricultural cooperative association for citrus growers in Florida, needs to predict what will happen to the price and output of Florida oranges under the

Stoichiometry , Mg(OH)2 + 2HCl-----> MgCl2 +2H2O how many grams of magnesiu...

Mg(OH)2 + 2HCl-----> MgCl2 +2H2O how many grams of magnesium chloride can be produced from 14.60mL of a 0.546M hydrogen chloride solution?

Ppf, You should find two articles, of which one should report on changes th...

You should find two articles, of which one should report on changes that make farming more productive (more food per acre, hour or other unit of inputs), and another about changes

International trade, discuss the methods used by the malaysian government t...

discuss the methods used by the malaysian government to slow down import growth.

Marshalian demand, determination of optimal solution mathematical presentat...

determination of optimal solution mathematical presentation

Describe the spatial distribution, Show that a pulsed spherical wave has a ...

Show that a pulsed spherical wave has a complex wavefunction of the form U(r,t) = (1/r)a(t-r/c) where a(t) is an arbitrary function. An ultrashort optical pulse has a complex wavef

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd