Research Proposal Tourism in Resource Based Countries.docx

Unit root test first thing that should be checked is

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  Unit Root Test First thing that should be checked is unit root test which is a feature of some  stochastic processes that can cause problems is statistical inference involving time series  models. A stochastic process has a unit root if 1 is a root of the process’s characteristic  equation. Such a process is non-stationary but does not always have a trend (Porter C. Down  2009, p 754). If the other roots of the characteristic equation lie inside the unit circle – that is, have a modulus less than one – then the first difference of the process will be stationary;  otherwise, the process will need to be differenced multiple times to become stationary (Porter C. Down 2009, p 744). Due to this characteristic, unit root processes are also called  difference stationary. In the case if there will be any unit root then other tests will be used as  Johansen test, Schmidt and Phillips, Dickey and Fuller. 
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  Quant Analysis Multicollinearity (also collinearity) will be used in that research. It is a phenomenon  in which one predictor  variable  in a multiple regression model can be linearly predicted from  the others with a substantial degree of accuracy. In this situation the coefficient estimates of  the multiple regressions may change erratically in response to small changes in the model or  the data (Gujarati Damodar 2009, p 320). Multicollinearity does not reduce the predictive  power or reliability of the model as a whole, at least within the sample data set; it only affects calculations regarding individual predictors. That is, a multivariate regression model with  collinear predictors can indicate how well the entire bundle of predictors predicts the  outcome variable, but it may not give valid results about any individual predictor, or about  which predictors are redundant with respect to others. (Gujarati Damodar 2009, p 320) 6.   Research Plan and Outline  Overall economic conditions  in the countries will be analysed based on the main statistical  indicators stated below: GDP Volume of Oil and Gas in GDP Number of Tourists/Served Visitors in Accommodation Establishments  Number of Travel Agencies or Hotel Occupancies Employment in Tourism Industry Total Contribution of Travel and Tourism Industry in GDP Azerbaijan Azerbaijan has gone through tough period of development since gaining  independence in October 18, 1991. Political instability that was used to be dominant over the  whole country was the main challenge in front of the economic development. During the first 
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