LIMITATIONS OF THE PANEL REGRESSION MODEL APPLICATION: THE EXAMPLE OF THE WESTERN BALKAN COUNTRIES
LIMITATIONS OF THE PANEL REGRESSION MODEL APPLICATION: THE EXAMPLE OF THE WESTERN BALKAN COUNTRIES
Author(s): Bojan Baškot, Stanko StanićSubject(s): Economy, Economic policy
Published by: Економски факултет Универзитета у Бањој Луци
Keywords: panel regression model; heterogeneity; foreign direct investments; GDP growth;
Summary/Abstract: Panel regression model may seem like an appealing solution in conditions of limited time series. This is often used as a shortcut to achieve deeper data set by setting several individual cases on the same time dimension, where cross units visually but not really multiply a time frame. Macroeconometrics of the Western Balkan region assumes short time series issue. Additionally, the structural brakes are numerous. Panel regression may seem like a solution, but there are some limitations that should be considered.
Journal: Acta Economica
- Issue Year: 18/2020
- Issue No: 32
- Page Range: 151-171
- Page Count: 21
- Language: English