IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v31y2024i2p170-175.html
   My bibliography  Save this article

A comparative analysis of the outliers influence using GMM estimation based on dynamic panel data model

Author

Listed:
  • Xingyu Fan
  • Zhisheng Peng

Abstract

This study proposes a novel approach by combining the first differenced generalized method of moments method (DIF-GMM) to remove the estimates bias in the dynamic panel data model and the least trimmed squares (LTS) to control outlier influence. The combination of these two methods is referred to as DIF-GMM+LTS. We apply this approach to examine the influence of outliers on the effect of financial development on economic growth. Our results show a counter-intuitive evidence that the bank development negatively affects economic growth when the outlier influence is ignored. However, the bank development exhibits a positive influence on economic growth once the proposed approach DIF-GMM+LTS is adopted. Also, stock market development shows a positive effect on economic growth regardless of the outliers.

Suggested Citation

  • Xingyu Fan & Zhisheng Peng, 2024. "A comparative analysis of the outliers influence using GMM estimation based on dynamic panel data model," Applied Economics Letters, Taylor & Francis Journals, vol. 31(2), pages 170-175, January.
    • Handle: RePEc:taf:apeclt:v:31:y:2024:i:2:p:170-175
    DOI: 10.1080/13504851.2022.2129563
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2022.2129563
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2022.2129563?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:31:y:2024:i:2:p:170-175. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.