Author(s)

GaoBo Peng

Affiliation(s)

School of Mathematics and Statistics, Guangxi Normal University, Guilin 541006, Guangxi, China.

Corresponding Author

GaoBo Peng

ABSTRACT

This paper explores the macroeconomic indicators affecting the Engel Index. Initially, a multicollinearity test reveals the presence of multicollinearity among the independent variables. To eliminate multicollinearity, ridge regression modeling is employed. The analysis identifies six independent variables, with only one having an insignificant regression coefficient. The results show that labor force, urbanization rate, and trade balance are negatively correlated with the Engel Index, while the added value of the primary industry and the gross national income index are positively correlated with the Engel Index.

KEYWORDS

Engel Index; Multicollinearity; Ridge regression; Principal component regression

CITE THIS PAPER

GaoBo Peng. Analysis of factors influencing the Engel index based on regression models. Trends in Social Sciences and Humanities Research. 2024, 2(4): 62-67. DOI: 10.61784/tsshr3012.

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