LINEAR REGRESSION MODEL IN THE ANALYSIS OF THE GROSS DOMESTIC PRODUCT

Abstract

As we ascertain the evolutionary trend of the global economy, it becomes evident that strict analyses on the evolution of a certain micro or macro-economical indicator is no longer enough to describe the corresponding phenomenon, as the emphasis shifts towards the analysis of the correlations existing between two or more indicators, able to offer a much stronger insight on the economical phenomenon. We propose to use the simple linear regression model, a relatively easy and very effective modality to establish the correlation between two economical indicators. The measurement of the factor’s influence on the indicator will most surely offer additional information on the phenomen they describe.

Keywords

• analysis
• GDP
• factor
• regression
• context
• consumption