Chinese regional economic research based on panel data model

Panel Data model occupies in economic research of higher status, the method is also a newly-developed and practical analysis method. The paper makes research on Hebei, Henan and Shandong three regions gross regional domestic product, primary industry, secondary industry and tertiary industry data, and analyzes data from opening-up and reform to 2011; in the paper, it takes Panel Data model as research method, firstly states Panel Data model principle and model construction moment required mathematical tool-least square method, and then applies each region statistical bureau statistics almanac data analyzing each industry and gross regional domestic product trends followed by time changing, it gets four kind of data has higher correlations by figure, finally it gets three regions' gross regional domestic product increment and three industries increment relations by the paper established mathematical model and computing method, obtained all regression equation multiple correlation coefficients are 1, variance is very little, from which largest variance is Shandong that its variance is 2.2214. By the paper described research methods and research results indicating, Panel Data model can be used as regional economic research's important statistical method, and it can make prediction on future several years' data. © 2014 Trade Science Inc. - INDIA.