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ADRL study of FDI in China

Posted: Thu Apr 28, 2016 8:22 pm
by MBrown01
I'm working on a masters thesis. The study is FDI in China. I have 15 yrs quarterly data and literature indicates a possible 15 variables that could be used. I assume this is too many so will break it down to the most important.
It has been suggested that I use ADRL. I don't know a lot about it but have been reading up on it this last week or so.

I was wondering if this would be a good approach.

(I'd rather ask here than ask my professor in the first instance)

Mark

Re: ADRL study of FDI in China

Posted: Fri Apr 29, 2016 2:41 am
by trubador
Yes, ARDL is an appropriate method if your purpose is to identify cointegrating relationships among your variables without concerning their level of integration and the symmetry of lag lengths.