Regression Analysis

In sum, regression analysis involves the following:

• Identify the population and sample models.
• Estimate the coefficients in the sample regression model.
• Make inferences from sample coefficient estimates to population parameters.
• Check whether model assumptions are satisfied.

Frankel and Romer analysis

Now, we return to the Frankel and Romer analysis. Their innovation proposes a new way to deal with the problem that international trade’s impact on growth may be due to the possibility that trade itself is a function of other factors.