LIMITATIONS OF THE PANEL REGRESSION MODEL APPLICATION: THE EXAMPLE OF THE WESTERN BALKAN COUNTRIES

  • Bojan Baškot Central Bank of Bosnia and Herzegovina, University of Banja Luka
  • Stanko Stanić University of Banja Luka, Faculty of Economics, Banja Luka
Keywords: panel regression model, heterogeneity, foreign direct investments, GDP growth

Abstract

Panel regression model may seem like an appealing solution in conditions of limited time series. This is often used as a shortcut to achieve deeper data set by setting several individual cases on the same time dimension, where cross units visually but not really multiply a time frame. Macroeconometrics of the Western Balkan region assumes short time series issue. Additionally, the structural brakes are numerous. Panel regression may seem like a solution, but there are some limitations that should be considered.

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Published
2020-06-30
How to Cite
Baškot, B., & Stanić, S. (2020). LIMITATIONS OF THE PANEL REGRESSION MODEL APPLICATION: THE EXAMPLE OF THE WESTERN BALKAN COUNTRIES. Acta Economica, 18(32), 151-171. https://doi.org/10.7251/ACE2032151B
Section
Review article

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