A Comparative study between seemingly unrelated regression equations (SURE) and the ordinary least squares method (OLS) in determining labor demand in Iraq for the years (1990-2020) A Comparative study between seemingly unrelated regression equations (SURE) and the ordinary least squares method (OLS) in determining labor demand in Iraq for the years (1990-2020)

Abstract

         The use of statistical and standard methods has a major role in addressing and solving the problems of economic theory, as the standard method is characterized by diagnosing and analyzing the variables affecting the phenomenon and determining the interdependence and interdependence between its variables, directly or indirectly. When studying any phenomenon, it is necessary to know the factors that affect it in order to describe the appropriate model to estimate its parameters and interpret the obtained results. This research aims to describe the regression equations in the economic sectors (agriculture, industry, services) for the years (1990-2020) as a seemingly unrelated regression equations system, written as SURE, Since it has become inappropriate to study these sectors separately, as there are overlaps and interdependence between these sectors, and from this point of view, the research came to study these sectors together in the form of mathematical relations called the SURE system, which is considered a special empty of the system of simultaneous equations, As the SURE system does not show any independent and dependent variable at one time, but there is an overlap between the random errors of the system equations, where the OLS method was used to find the estimators of the system equations as one of the best methods used in solving the single equation, and through it the remainders were employed in Finding the covariance and covariance matrix to obtain the SURE estimators simultaneously and in one go for all the equations after making sure that there is a correlation between the random errors of the system equations so that more efficient and less variance estimators are obtained compared to the OLS estimators using the Eviews12 statistical program to obtain the results, as it was found that the service sector It is the most accommodating and employed manpower in the Iraqi economy.