Canonical Correlation of Multivariate Regression Analysis on Economic Factors in Nigeria
E. E. Bassey *
Department of Statistics, University of Calabar, Calabar, Nigeria.
U. P. Akra
Department of Statistics, University of Calabar, Calabar, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
This research is on canonical correlation of multivariate regression analysis on economic factors in Nigeria. This study aim to analyze the effect of Nigerian macroeconomic factors and also to investigate the relationship between the factors for the period of 1985-2014. Four macroeconomic variables (economic factors) used in this research are Gross Domestic Product (GDP), Currency in Circulation (CIC), Foreign Trade and Inflation. Canonical correlation analysis under Multivariate regression was used for association between the variables. The result showed that there is a significant relationship between GDP and all the variables considered at (0.01) level of significant with the exception of inflation which showed negative and no significant relationship. However, the results also revealed that the economy of Nigeria is been affected by volume of economic factor returns.
Keywords: Multivariate regression, canonical correlation, economy and economic factors