type of data panel data
dependant variables: current account balance, trade balance
independent variables: money supply(M2), gdpgrowth, exchange rate, inflation, foreign directinvestment , inflation, house-hold consumption expenditure
its completely related to your statistical test such as LEMER and Hausman test to decide to chose betwssn different models and methods.
You should relevant tests to run a suitable model including:
Redundant Fixed Effects Test
Panel Unit Root Test, if time period is long.
Hausman Test ,...and other tests...
Thank you for your suggestion @ Moteza, Lotfati Agheli, I am trying to use Panel VAR(Michael R.M. Abrigo and Inessa Love 2015), do you think that this method is good for the analysis.
Business model
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