Panel Data Analysis Data Analysis

4.2.2 Panel Data Analysis

This research used Panel data. Panel data is a group of individuals object, company and etc, in a current period of time of specific unit. Panel data is a combination of cross section data and time series data. As we know that this model is focuses on the regression analysis and the combination of time series and cross section, which is famous called by pooled time series. There are other names for panel data, such as pooled data pooling of time series and cross-sectional observations, combination of time series and cross-section data, micropanel data, longitudinal data a study over time of a variable or group of subjects, event history analysis e.g., studying the movement over time of subjects through successive states and conditions Gujarati, 2003. From three panel data method approaches, there are two approaches that are commonly used to estimate the regression model in pooled data, they are fixed effect model and random effect model. To determine the method between pooled least square and fixed effect we can test it through F test and Hausman test will be used to determine between random effect and fixed effect Winarno, 2009. Haussman test is used to determine between fixed effect method and random effect method. Chi Square value equation of Hausman test, are: Matrix b_diff = b_fixed – b_random Matrix var_diff = cov_fixed – cov_random Matrix qform = transposeb_diffinversevar_diffb_diff Null Hypothesis of Haussman test, are: H = random effect H 1 = fixed effect If Chi Square statistic Chi Square table or in other word, p-value 0.005, where it means that we should reject null hypothesis H and determine that fixed effect model is the suitable model to use Winarno, 2009. Hausman test is also available through Eviews-6 command program. Table 4.1 Hausman Test Result Test Summary Chi-Sq. Statistic p -value Effect CPI 7.300554 0.0069 Fixed RER 2.667002 0.1024 Fixed GFER 4.548718 0.0329 Fixed GRVT 0.855584 0.3550 Fixed GRRVT 0.857151 0.3545 Fixed GRYPC 0.840744 0.3592 Fixed Source: Eviews-6, 2010. Note: fixed effect while p-value 0,005

4.2.3 Classic Assumption Test Analysis