Multiple Regression Help

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sonam00
Posts: 4
Joined: Tue Aug 28, 2012 9:15 am

Multiple Regression Help

Postby sonam00 » Tue Aug 28, 2012 10:08 am

Hi there,
I am new to E Views. Currently, I am using EViews 7 to do my research. I was wondering if anyone could help me to create the Multiple Regression as below:
LnFDI = α + β1LnGDP + β2LnGDPG + β3LnGNI + β4LnNR + β5LnEXR + β6LnINF + β7LnEXP +β8LnIMP + β9LnID + β10LnOPEN +ε
All variables are in logarithm form where:
FDI = dependent variable
GDP, GDPG, GNI, natural resource (NR), exchange (EXR), inflation (INF), imports (IMP), infrastructure development (ID) and trade openness of host country (OPEN) = independent variable
Using ordinary least square analysis (OLS). Because variables are calculated in different units such as current US$ (FDI, GDP, GNI, natural resource, exchange rate and imports), percentage (GDP growth, inflation, trade openness) and kWh (infrastructure development), therefore variables will be transferred into logarithm form as a standard process.
Note: Can you please also tell me what I can do with the missing data if I don’t want to delete them from my research because I got some missing data for GNI and ID.

Kind regards,
Sonam
Attachments
data IMF.xlsx
This attachment includes all data used for my research
(13.62 KiB) Downloaded 272 times

EViews Gareth
Fe ddaethom, fe welon, fe amcangyfrifon
Posts: 13604
Joined: Tue Sep 16, 2008 5:38 pm

Re: Multiple Regression Help

Postby EViews Gareth » Tue Aug 28, 2012 10:13 am

You should read through the first three chapters of EViews Illustrated:
http://eviews.com/illustrated/illustrated.html

sonam00
Posts: 4
Joined: Tue Aug 28, 2012 9:15 am

Re: Multiple Regression Help

Postby sonam00 » Sun Sep 02, 2012 8:45 am

I have read chapter 1,2,3 and be able to estimate the regression. Unfortunately, the coefficients seem wrong like -17. or 8. (is it true that coefficient must be between +1 and -1) :(
Please advice me how to correct it.
The attached file is my regression result
Thanks a lot
Attachments
regfull.jpg
regfull.jpg (139.59 KiB) Viewed 5579 times

startz
Non-normality and collinearity are NOT problems!
Posts: 3798
Joined: Wed Sep 17, 2008 2:25 pm

Re: Multiple Regression Help

Postby startz » Sun Sep 02, 2012 9:24 am

You are trying to estimate 10 parameters with 21 observations. That's not likely to work well.

sonam00
Posts: 4
Joined: Tue Aug 28, 2012 9:15 am

Re: Multiple Regression Help

Postby sonam00 » Sun Sep 02, 2012 9:37 am

I got 25 observations but then 2 variables got some missing data and it adjusted to 21 observations

startz
Non-normality and collinearity are NOT problems!
Posts: 3798
Joined: Wed Sep 17, 2008 2:25 pm

Re: Multiple Regression Help

Postby startz » Sun Sep 02, 2012 10:14 am

You need to look at your data and think about what kind of model makes sense rather than mechanically running a regression.

sonam00
Posts: 4
Joined: Tue Aug 28, 2012 9:15 am

Re: Multiple Regression Help

Postby sonam00 » Mon Sep 03, 2012 10:30 am

thanks for your advice. by the way, is it true that correlation coefficient must be between +1 and -1? I have run correlation matrix but it seems fine

startz
Non-normality and collinearity are NOT problems!
Posts: 3798
Joined: Wed Sep 17, 2008 2:25 pm

Re: Multiple Regression Help

Postby startz » Mon Sep 03, 2012 11:49 am

Yes, correlation coefficients must be between -1 and +1. But regression coefficients are unrestricted.


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