EU ANTITRUST: HOT TOPICS & NEXT STEPS

EU ANTITRUST: HOT TOPICS & NEXT STEPS 2022

Prague, Czechia

Figure 4. FDI movement within the period 2007–2017

Source: Own elaboration (2021)

4. Linear correlation and linear regression modelling If we test the correlation between the previously observed indicators regarding the size of the EAP index and GDP value we can use the Scatter Plot Diagram, Figure 5, and conclud that the movement of EAP index and GDP value is consistent and that the correlation is linear and positive while the coefficient of determination is about 0.20. Based on supposed model of single linear regression it can be concluded that 20% of the variance of the EAP index can be explained by the change in GDP value in the specified period. Naturally, standardized and adjusted regression coefficient that coluld be obtained by deeper analysis would be lower, but for this level of analysis and inference based on trends in certain phenomena is quite satisfactory for recognizing the contours of certain relationships between individual indicators and values m​ onitored for Bosnia and Herzegovina by international institution. When we look at the regression equation Y = 0.0636X + 0.8242, which in the original sense should read EAP = 0.0636GDP + 0.8242, it can be understood that the linear regression equation says that with the increase in GDP, the EAP also increases, which is a sufficient sign that with the growth of living standards and economic growth, the state can expect a better application of competition law.

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