Panel Data Modelling: A Case Study On Determinants Of Fdi In Developing Countries. Deepali Karmali Abstract:-Panel Data modelling is a major advancement in econometric analysis of financial and economic data. It has several advantages over Ordinary Least Square Method. In this paper an attempt is made to study the determinants of FDI in developing countries using Panel Data Framework. The model hypothesised that the factors affecting FDI in developing countries are the market size, external debt, trade openness, exchange rate and inflation. The study used fixed effects and random effects models and the selection of these models was made using Hausman and Breusch-Pagen tests. The study also used Wald and F-test to estimate the joint significance of time dummies. Data used for the present study ranges between 1994-2009 and all major developing countries including India have been included in panel. The study has many interesting results and can have far reaching implications to the economic policies of developing countries. The results of the study will be of much use to India as we are in process of fine tuning our policy towards FDI. isrj.net/UploadedData/3185.pdf
Posted on: Sun, 06 Oct 2013 07:57:43 +0000