PETANG CARI DATA OBJEKTIF 2 - UR N FDI INFLOWS UNTUK ASIA

=================================
endogeneity
- situations in which an explanatory variable is correlated with the error term

instrumental variable
- An instrumental variable (sometimes called an “instrument” variable) is a third
variable, Z, used in regression analysis when you have endogenous variables —
variables that are influenced by other variables in the model. In other words, you
use it to account for unexpected behavior between variables.

Method of Moments
-a method of estimation of population parameters

homoscedasticity or homogeneity of variances

- constant variance

heteroskedasticity
- nonconstant variance - unequal scatter

heterogeneous panel
- allow for any or all of the model parameters to vary across individuals.

Homogeneous panel
- Homogeneous (or pooled) panel data models assume that the model parameters are
common across individuals.

bootstrap
- a resampling technique used to estimate statistics on a population by sampling a
dataset with replacement. Bootstrapping a regression model gives insight into how
variable the model parameters are.

Heterogeneous Panel Data Model

- the coefficients in the model differ for each cross-section in the panel dataset

Unobserved heterogeneity
- where correlation between observables and unobservables may be expected.

asymptotic property
- their properties as the number of observations in a sample becomes very large and
tends to infinity

Asymptotic Distribution
- An asymptotic distribution is a hypothetical distribution that is the limiting
distribution of a sequence of distributions.
time-invariant
- the value of the variable does not change across time. Gender and race are
obvious examples, but this can also include things like the Educational
Level of the Respondent’s Father.

time-variant
- the variable has the same effect across time, e.g. the effect of gender on
the outcome at time 1 is the same as the effect of gender at time 5.

Individual-specific effects model

(A)i - is the intercept
• We assume that there is unobserved heterogeneity across individuals
captured by (A)i.
Example: unobserved ability of an individual that affects wages
• The main question is whether the individual-specific effects (A)i are
correlated with the regressors atau Independent variable.
• If they are correlated, we have the fixed effects (FE) model. If they are not
correlated we have the random effects (RE) model.

Covariance
- the measure of how two random variables in a data set will change together.

Cointegration Test
used to establish if there is a correlation between several time series in the long
term.

autoregressive (AR) Model

- predicts future behavior based on past behavior. It is a linear regression model
that uses lagged variables as input variables.

AR(1) Autoregressive Process

- the current value is based on the immediately preceding value

AR(2) Autoregressive Process

- the current value is based on the previous two values.

idiosyncratic error
- unobserved factors that impact the dependent variable—from panel data that both
changes over time and across units (individuals, firms, cities, etc.)

idiosyncratic behaviors
- behaviors that specific to particular individuals or groups

Factor loadings
- quantifies the extent to which the variable is related to a given factor. Serves
as a data reduction method designed to explain the correlations between observed
variables using a smaller number of factors

exogenous variable
- whose value is determined outside the model and is imposed on the model

exogenous change
- change in an exogenous variable.

endogenous variable
- a variable whose value is determined by the model.

What is the difference between error and residual?

- The error (or disturbance) of an observation is the deviation of the observed
value from the true value of a quantity of interest (for example, a population
mean). The residual is the difference between the observed value and the estimated
value of the quantity of interest (for example, a sample mean).

Cross-sectional data
- type of data collected by observing many subjects (such as individuals, firms,
countries, or regions) at the one point or period of time.

stochastic model
- a situation where uncertainty is present. In other words, it’s a model for a
process that has some kind of randomness.

Monte Carlo simulation

- a method of analysis based on artificially recreating a chance process (usually
with a computer), running it many times, and directly observing the results.

spurious correlation
- occurs when two or more associated variables are deemed causally related due to
either a coincidence or an unknown third factor.