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Comparison of neural networks and regression time series on forecasting development of US imports from the PRC

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  • Jakub Horák
  • Veronika Machová

Abstract

The contribution deals primarily with the development and prediction of the PRC export to the USA, comparing traditional statistical methods in the form of regression analysis of time series and artificial neural networks, which are a very important prediction tools, and become an integral part of modelling and predicting certain development of time series based on the statistical data. The USA import from China can be defined based on the statistical, causal, and intuitive methods. In this case, the contribution deals primarily with comparing the statistical methods. The contribution provides only a possible framework of the monitored variable development. It is necessary to work also with the information about the future economic, political or legal environment. If it is possible to predict their development, it can then be reflected in the monitored variable. Optically, the best option from linear regression appears to the curve obtained by the least squares method by negative exponential smoothing. As for the neural networks, all retained structures appear to be applicable in practice. In terms of the correlation coefficient, only neural networks are applicable.

Suggested Citation

  • Jakub Horák & Veronika Machová, 2019. "Comparison of neural networks and regression time series on forecasting development of US imports from the PRC," Littera Scripta, VSTE, vol. 12(1), August.
  • Handle: RePEc:rsg:littra:2019-005
    DOI: 10.36708/LS.2019.I01.005
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    References listed on IDEAS

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    1. Pesaran, M. Hashem & Smith, Ron P., 2014. "Signs of impact effects in time series regression models," Economics Letters, Elsevier, vol. 122(2), pages 150-153.
    2. Andrew B. Bernard, 2004. "Exporting and Productivity in the USA," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 20(3), pages 343-357, Autumn.
    3. Kourentzes, Nikolaos, 2013. "Intermittent demand forecasts with neural networks," International Journal of Production Economics, Elsevier, vol. 143(1), pages 198-206.
    4. Geng, Yong & Tian, Xu & Sarkis, Joseph & Ulgiati, Sergio, 2017. "China-USA Trade: Indicators for Equitable and Environmentally Balanced Resource Exchange," Ecological Economics, Elsevier, vol. 132(C), pages 245-254.
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