Bounds Analysis (bound + analysis)

Distribution by Scientific Domains


Selected Abstracts


The Determinants of Foreign Direct Investments: Sensitivity Analyses of Cross-Country Regressions

KYKLOS INTERNATIONAL REVIEW OF SOCIAL SCIENCES, Issue 1 2001
Avik Chakrabarti
A vast empirical literature has used ad hoc linear cross-country regressions to search for the determinants of FDI. The literature is extensive and controversial. Can policy-makers use this body of research to learn anything that can help them stimulate FDI? The author uses Extreme Bound Analysis (EBA) to examine if any of the conclusions from the existing studies is robust to small changes in the conditioning information set. The EBA upholds the robustness of the correlation between FDI and market-size, as measured by per-capita GDP, but indicates that the relation between FDI and many of the controversial variables (namely, tax, wage, openness, exchange rate, tariff, growth, and trade balance)bare highly sensitive to small alterations in the conditioning information set. The author also studies the distribution of the estimated coefficients of the controversial explanatory variables to rank them in order of their likelihood of their being correlated with FDI. [source]


Economic Development Indicators as Determinants of Medal Winning at the Sydney Olympics: An Extreme Bounds Analysis

AUSTRALIAN ECONOMIC PAPERS, Issue 3 2004
Imad A. Moosa
This paper examines the variables that determine the performance of countries at the Olympic Games as measured by a weighted sum of the medals won at the Sydney 2000 Games. While previous studies have identified the importance of a country's economic size and the resources available to sport, this paper examines nine more variables including the number of athletes representing each nation and some development indicators. Based on 2310 regressions, both traditional and restricted extreme bounds analysis show that only two variables are robust: the number of athletes and national expenditure on health. Thus, the final model recognises four explanatory variables that include these two as well as GDP and population. [source]


WHICH VARIABLES EXPLAIN DECISIONS ON IMF CREDIT?

ECONOMICS & POLITICS, Issue 2 2005
AN EXTREME BOUNDS ANALYSIS
This paper analyses which economic and political factors affect the chance that a country receives IMF credit or signs an agreement with the Fund. We use a panel model for 118 countries over the period 1971,2000. Our results, based on extreme bounds analysis, suggest that it is mostly economic variables that are robustly related to IMF lending activity, while most political variables that have been put forward in previous studies on IMF involvement are non-significant. To the extent that political factors matter, they seem more closely related to the conclusion of IMF agreements than to the disbursement of IMF credits. [source]


A bounds analysis of school completion rates in Australia

JOURNAL OF APPLIED ECONOMETRICS, Issue 3 2008
Tue Gørgens
Official estimates of school completion rates in Australia increased in the 1980s, peaked in 1992, and fell immediately thereafter before stabilizing. The official estimates were a specific focus of Australian education policy. The decline caused concern at the time. We use data from the Australian Youth Survey (AYS) to gain insight into the behavior of the official estimates. The AYS suffers from nonrepresentativeness, attrition and nonresponse, which means that parameters of interest are not identified. Our bounds analysis is suggestive that school completion was overstated in the official estimates at their peak. Our analysis points to repetition as a key factor in inflating the official estimates. Copyright © 2008 John Wiley & Sons, Ltd. [source]