Empirical Econometric Evaluation of Alternative Methods of Dealing with Missing Values in Investment Climate Surveys
Investment climate Surveys are valuable instruments that improve our understanding of the economic, social, political, and institutional factors determining economic growth, particularly in emerging and transition economies. However, at the same ti...
| Main Authors: | , , |
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| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100623140811 http://hdl.handle.net/10986/3832 |
| Summary: | Investment climate Surveys are valuable
instruments that improve our understanding of the economic,
social, political, and institutional factors determining
economic growth, particularly in emerging and transition
economies. However, at the same time, they have to overcome
some difficult issues related to the quality of the
information provided; measurement errors, outlier
observations, and missing data that are frequently found in
these datasets. This paper discusses the applicability of
recent procedures to deal with missing observations in
investment climate surveys. In particular, it presents a
simple replacement mechanism -- for application in models
with a large number of explanatory variables -- which in
turn is a proxy of two methods: multiple imputations and an
export-import algorithm. The performance of this method in
the context of total factor productivity estimation in
extended production functions is evaluated using investment
climate surveys from four countries: India, South Africa,
Tanzania, and Turkey. It is shown that the method is very
robust and performs reasonably well even under different
assumptions on the nature of the mechanism generating
missing data. |
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