Panel Data Analysis of International Trade in West African Sub Region
American Journal of Theoretical and Applied Statistics
Volume 9, Issue 4, July 2020, Pages: 106-120
Received: Feb. 2, 2020; Accepted: Mar. 2, 2020; Published: Jun. 4, 2020
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Authors
Yahaya Haruna Umar, Statistics Department, Faculty of Science, University of Abuja, Abuja, Nigeria
Bamanga Muhammad, Statistics Department, Faculty of Science, University of Abuja, Abuja, Nigeria
Udeme Omoren, Statistics Department, Faculty of Science, University of Abuja, Abuja, Nigeria
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Abstract
West African countries have suffered so much under poor economic growth rate; this issue is largely caused as a result of the poor performance in international trade, which is one of the most essential tools for economic growth. The study investigated the factors influencing international trade in West African Sub region. A Pooled OLS, Fixed Effect Model, and Random Effect Model were adopted to fit the panel regression model for the panel data sets. The study divided the models into three in other to have proper view of factors influencing international trade across West African Sub-region, each model contain the same independent variables and different dependent variables. The result shows that fixed effect model was accurate for the study. Also from the study it was observed that for the first model which use import as dependent variable, gross domestic production, foreign direct investment, and exchange rate are positively significant to import which implies that all the regressor variable influence import across west African sub region positively, while only GDP and FDI are positively significant to export and only FDI is positively significant to trade balance (TB). We therefore conclude that foreign direct investment is the key macro-economic variable that positively influences the policy of international trade across West African over the period of consideration.
Keywords
Panel Data, Model, Pooled OLS, West African Sub-region
To cite this article
Yahaya Haruna Umar, Bamanga Muhammad, Udeme Omoren, Panel Data Analysis of International Trade in West African Sub Region, American Journal of Theoretical and Applied Statistics. Vol. 9, No. 4, 2020, pp. 106-120. doi: 10.11648/j.ajtas.20200904.14
Copyright
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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