Method for detecting significant patterns in panel data analysis

Abstract

The paper considers the use of a method for the identification and verification of significant patterns to find clear and measurable differences between groups of countries by the nature of the relationship of the dynamics of their macroeconomic indicators. The analysis is conducted using panel data that include annual values of a number of economic indicators in a specified time intervals. An approach based on permutation tests is used to take into account the effect of multiple testing. A technology that combines correlation analysis with the detection of significant patterns has made it possible to reveal statistically significant differences between groups of countries with two types of institutional matrices as identified by sociologists.