The model proposed in this paper is a modification of the second-order autoregressive process with the addition of an external variable
that allows taking into account the cycles of trading partners to predict output. This model has shown a significant advantage in forecasting for the long-term horizon, which confirms the importance of taking into account the economic activity of partner countries when forecasting the GDP of the Russian Federation.
Abstract
The model proposed in this paper is a modification of the second-order autoregressive process with the addition of an external variable
that allows taking into account the cycles of trading partners to predict output. This model has shown a significant advantage in forecasting [...]