Statistical Analysis of Selected Macroeconomic Determinants by Using ARDL Model: United State Case
This paper aims to study the relation between some selected macroeconomic determinants: Inflation consumer prices in percent, Foreign Direct Investment in Millions of Dollars, Real Disposable Personal Income Per Capita in Dollars and Dependent variable; the Gross Domestic Product (GDP) in the United States, by applying statistical analysis to determine the long-run relationship using Auto Regressive Distributed Lag (ARDL) Model. The ARDL model was performed during 63 years from 1960 to 2022, Annual data from Federal Reserve Economic Data. The empirical findings confirmed that there is a longrun relationship between Gross Domestic Product (GDP) and the selected macroeconomic determinants. The researcher concludes that there is an existence of cointegration between the variables. The error correction term is negative with an associated coefficient estimate of (-0.006800). This implies that about 0.68% of any movements into disequilibrium are corrected within one period. Moreover, given the very large t-statistic, namely (-6.626635), we can also conclude that the coefficient is highly significant with Pvalue equals (0.0000), which means that the variables have the ability to overcome the problems they suffer from, and the ability to correct structural imbalances during the long term.
Keywords: Analysis, Macroeconomic, Determinants, ARDL, and United State.