Investor Presentaiton
Data, Methodology and Model Configuration.
▸ We will follow two step estimation strategies to explore PNG's global trade potential.
In the first stage we have to estimate the initial model and the Per Capita GDP Differential using OLS
estimation technique with cross section data for the year 2000 and 2019 covering 31 countries including
PNG.
▸ The dependent variable is the value of total bilateral trade (export value plus import value will be in US
dollar million) of country i (PNG) and country j (PNG's trading partner).
▸ The coefficients thus obtained in the first stage will then be used in the second stage to calculate the
predicted bilateral trade of PNG with its 31 trading partners around the globe. These predicted trade
values will then be analyzed and compared with the actual trade values to explore PNG's global trade
potential.
▸ Econometric issues such Endogeneity, Multicollinearity, Heteroscadasticity will be taken care of as per
econometrical process.View entire presentation