The Use of Regression Panel Analysis with Fixed Effects in International Trade: The Example of Poverty in Africa
The Use of Regression Panel Analysis with Fixed Effects in International Trade: The Example of Poverty in Africa

Author(s): Vladyslav Bato Vladyslav, Peter Duhan, Peter
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Panel data; Regression; International trade; Development; GDP; FDI; Remittances; Export
Summary/Abstract: This paper explores the application and potential of panel data regression analysis in international trade. By leveraging panel data, the authors aim to understand the impact of various economic factors on poverty rates in African countries. The study uses fixed effects models to analyze the relationship between gross domestic product (GDP) per capita, foreign direct investment (FDI) inflows, remittances, and export rates on the proportion of the working population living in poverty. The findings indicate that higher GDP per capita and increased remittances reduce poverty rates, whereas FDI inflows and export rates do not show a statistically significant impact. The paper underscores the importance of economic growth and remittances in poverty alleviation and calls for more nuanced strategies to address poverty in Africa effectively. Future research should investigate the structural aspects of exports and regional specificities to enhance the understanding of these dynamics.

• Details
• Contents