Econometric Models for
Socioeconomic Development and Planning
Dila Ram Bhandari & Dr.
Uma Srivastava
Abstract
Econometric models have been
widely used in analyzing and predicting socioeconomic
development through mapping relationships between economic
variables and social phenomenon. This paper reviews the
major categories of econometric models' linear
regression, panel data models, time series analysis, and
structural equation modeling employed to analyze patterns
of growth, distribution of income, alleviation of poverty,
achievement in education, and improvements in health and
other factors. Econometric models are indispensable
instruments of analysis, prediction and management of
socioeconomic development. It discusses model formulation,
estimation procedures and the problems of
multicollinearity, and observation errors that tend to be
present in
socio-economic data sets. By applying econometric methods,
this framework allows policymakers and researchers to
improve the design, implementation, and evaluation of
growth strategies aimed at promoting inclusive and
sustainable economic progress. Using simulated and
secondary data, we demonstrate how these models quantify
the impact of economic policies on growth, employment, and
inequality. The study reveals that properly specified
econometric models provide robust insights that can inform
national and regional planning, especially in developing
countries.
Keywords: growth, poverty, regression, econometric models, policymaker
