Some concepts of contemporary econometrics depart from the arbitrary division of variables into endogenous and exogenous. In the estimation process of the econometric model or in prediction process, it may be important to test weak or strong exogeneity of variables. In the foreign trade modelling, we oft en deal with variables between which there may be feedback. Thus, the causality of variables in the classic sense is not always obvils and it should be tested to facilitate the proper specification of foreign trade models. This article is aimed at testing the exogeneity of selected macroeconomic variables used in foreign trade models, based on Visegrad Group countries. Exogeneity tests made in this paper are based on the results of the VEC and VAR models, which enabled to explain dynamic relations between variables in foreign trade. The results of this research can be helpful for determining the structure of actual links between variables, estimation of proper models and forecasting of variable values.
Keywords
Foreign trade, exogeneity, Visegrád Group, Granger causality test, VAR model, VEC model