The relationship between national income changes and the growth of the sporting goods manufacturing industry was explored in a 2014 study. This research examined the impact of cultural education levels, national income, and the development of the sporting goods industry through empirical analysis. The study used four unit root tests to evaluate the stationarity of key variables: LnEDU (education level), LnPGDP (per capita GDP), and LnSALE (sales in the sporting goods sector).
The results showed that for both LnEDU and LnSALE, the original hypothesis of a unit root could be rejected at the 1% significance level in both the level and first-difference tests, indicating that these variables are stationary. However, for LnPGDP, the level test did not reject the unit root hypothesis, but the first-difference test did, confirming that it is an I(1) variable.
To investigate long-term relationships, the study applied the Engle-Granger cointegration method using panel data. After confirming that all three variables—LnEDU, LnPGDP, and LnSALE—are stationary after first differencing, the researchers estimated a regression model. They used the change in educational level as an explanatory variable, the change in sporting goods manufacturing as the dependent variable, and national income as a control variable.
By analyzing the residuals from the regression, the study tested for stationarity using the same four unit root tests. If the residuals were found to be stationary, this would indicate a long-run cointegration relationship among cultural education levels, national income, and the development of the sporting goods industry. The findings suggest that changes in education and income significantly influence the growth of the sporting goods sector, highlighting the importance of economic and educational factors in industrial development.
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