(e) Suppose you have been given the following ordinary least squares (OLS) regression result. Estimated Long Run Coefficients using the ARDL Approach ARDL (1,2,2,2,0,2) selected based on Akaike Information Criterion Dependent variable is LY 33 observations used for estimation from 1987 to 2019 Regressor LK T-Ratio [Prob.] 4.6671[0.000] 4.6678[0.051] 7.9897[0.043] -4.802[0.009] 2.3898[0.028] 1.0498[0.308] Coefficient Standard Error 0.36068 0.077280 LM 0.45447 0.097363 LE 0.48751 0.061017 LF -0.41208 0.085800 LT 0.19057 0.079744 0.52521 0.500320 where, Y = Economic growth K = Capital M = Employment E = Electricity consumption F = Foreign direct investment T= Technology %3D %3D

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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(e)
Suppose you have been given the following ordinary least squares (OLS)
regression result.
Estimated Long Run Coefficients using the ARDL Approach
ARDL (1,2,2,2,0,2) selected based on Akaike Information Criterion
Dependent variable is LY
33 observations used for estimation from 1987 to 2019
T-Ratio [Prob.]
4.6671[0.000]
4.6678[0.051]
7.9897[0.043]
-4.802[0.009]
2.3898[0.028]
1.0498[0.308]
Regressor
Coefficient
Standard Error
0.36068
0.45447
LK
0.077280
LM
0.097363
0.48751
-0.41208
0.19057
0.52521
LE
0.061017
LF
0.085800
LT
0.079744
C
0.500320
where,
Y = Economic growth
K = Capital
M = Employment
E = Electricity consumption
F = Foreign direct investment
T= Technology
(i)
Write the regression equation. Interpret the estimated coefficients.
(ii)
Which explanatory variables are significant at the 1%, 5% and 10% level?
Which variables are insignificant? Briefly explain.
Transcribed Image Text:(e) Suppose you have been given the following ordinary least squares (OLS) regression result. Estimated Long Run Coefficients using the ARDL Approach ARDL (1,2,2,2,0,2) selected based on Akaike Information Criterion Dependent variable is LY 33 observations used for estimation from 1987 to 2019 T-Ratio [Prob.] 4.6671[0.000] 4.6678[0.051] 7.9897[0.043] -4.802[0.009] 2.3898[0.028] 1.0498[0.308] Regressor Coefficient Standard Error 0.36068 0.45447 LK 0.077280 LM 0.097363 0.48751 -0.41208 0.19057 0.52521 LE 0.061017 LF 0.085800 LT 0.079744 C 0.500320 where, Y = Economic growth K = Capital M = Employment E = Electricity consumption F = Foreign direct investment T= Technology (i) Write the regression equation. Interpret the estimated coefficients. (ii) Which explanatory variables are significant at the 1%, 5% and 10% level? Which variables are insignificant? Briefly explain.
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