All Times EDT
Keywords: Penal data Model, Fixed effect Model, Random Effect Model
This study used panel data regression models of Bayesian approach to examine the effects of institutions on economic growth of selected developing countries from (1990-2014). Under the Bayesian methodology, we have estimated four models, which are common effect, fixed effect, random effect and dynamic random effect model. The derivation of Bayesian panel data models is included. The estimated results of the study showed that panel data models are valid models in Bayesian methodology. The results of all independent variables in Bayesian approach is positively and significantly effect on dependent variable. On the basis of standard errors of all models, we must say that fixed effect model is the best model in Bayesian estimation of panel data models. Also, it was proved that the fixed effect model has the lowest value of standard error, as compared to other models.