INTRODUCTION TO ECONOMETRICS

INDIVIDUAL ASSIGNMENT
SUBMITTED TO: DR. M MALLIKARJUN
SUBMITTED BY: HARSHITA JAIN (191324)
INSTITUTE OF MANAGEMENT, NIRMA UNIVERSITY
DATE: 27TH FEBRUARY, 2020.

Dependent Variable (Y): BALANCE OF TRADE

Independent Variable (X1): EXCHANGE RATE
Independent Variable (X2): FOREIGN CURRENCY RESERVES

Independent Variable (X3): INFLATION

Calculation of CAGR
1. DEPENDENT VARIABLE

Instantaneous Growth Rate – 0.0113

CAGR= Antilog (COEEFICIENT) – 1 = 1.1375%
 2. INDEPENDENT VARIABLE X1

Instantaneous Growth Rate – - 0.000511

CAGR= Antilog (COEEFICIENT) – 1 = -0.0511%

3. INDEPENDENT VARIABLE X2

Instantaneous Growth Rate – 0.00630

CAGR= Antilog (COEEFICIENT) – 1 = 0.6321%
 4. INDEPENDENT VARIABLE X3

Instantaneous Growth Rate – -0.00060

CAGR= Antilog (COEEFICIENT) – 1 = -0.0608%

MATRIX MODEL