Application of Panel Data to the Effect of Five (5) World Development Indicators (WDI) on GDP Per Capita of Twenty (20) African Union (AU) Countries (1981-2011)

Abstract

In this paper, we employ Fixed Effect of Panel Data Model to formulate a Panal Data Linear Regression model of Gross Domestic Product Per Capita of 20 African Union (AU) Countries using 5 World Development Indicator (WDI)  as explanatory variables. Data were collected from 1981 to 2011. The 5 WDI are OER-Official Exchange Rate (LCU Per US$, Period Average), BM-Broad Money (% of GDP), INF-Inflation, GDP deflator (Annual %), TNR-Total Natural Resources Rents (% of GDP) and FDI-Foreign Direct Investment, Net Inflows (% of GDP).

Keywords: Econometrics, Cross section, Time series, Panel data, Fixed effect, Random effect.