ARX Parametric Model of a Regional Economy and Its Managerial Implications -A Case Study of Northern-East in China

ARX parametric model;Nonlinear system;managerial implications;Extended Instrumental Variable Method

Authors

  • ZHENG Shi School of Economic and Management, Dalian University for Minorities, Liaoning Province Dalian Development Zone, 116600, China
  • JIN Xia School of Economic and Management, Dalian University for Minorities, Liaoning Province Dalian Development Zone, 116600, China
  • ZHENG Wen Department of economics and management, Northeastern University in Qinhuangdao, Hebei Province, Qinhuangdao, 066000, China
December 5, 2017

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Northern-east ARX parametric model was developed in connection with the large delay characteristics of northern-east economy. This paper presents the framework, the model and managerial implications for the underlying northern-east economic system. The case scenarios were also applied to Liaoning Province in northern-east. The managerial implications were proposed to help economic entities as well as local authorities to understand the using of the model. Thus, it is an effective tool for decision-making in northern-east.