Estimate the data that all stationary by Ordinary Least Square (OLS)
The researchers have the stationary data then estimation the variables by Ordinary Least Square (OLS). Therefore, the researchers would like to use Eview program for finding relation between independent variables(X) to variable(Y).
TBt = β0 + β1YFt + β2REXt + ut
Where
Y = TB is unit free measure of bilateral trade balance defined as the ratio of Thai export to United State over its imports from United State in
timet.(million U.S. Dollar)
X1 = YF is real income of United States.(U.S. Dollar)
X2 =REX is real bilateral exchange rate between THB and the currency of United State USD.(U.S. Dollar/THB)
β0 isintercept
β1isthe coefficient of the real income of United Statesof America variable.
β2isthe coefficient of the real bilateral exchange rate between THB and the currency of United State USD.
ut is error term.
HAC(heteroscedasticity and autocorrelation-consistent standard error or Newey-West standard error)
Variable Coefficient Std. Error t-Statistic P-value
C -532.2339 406.4805 -1.309371 0.2089
Real income of United States of America. 0.734332 0.215234 3.411784 *0.0036
Exchange rate 173.4915 91.99534 1.885872 **0.0776
R-squared = 0.296844 F-statistic = 3.377272 Prob(F-statistic) = 0.059761
* show the P-value is significance level at 0.01
**show the P-value is not significance level at 0.1