(EViews 10) How to Perform Panel Co integration Test Model .

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To estimate your panel equation you must first be working with a panel structured workfile. Next, select Object/New Object.../Equation or Quick/Estimate Equation… then select COINTREG - Cointegrating Regression in the Method drop-down menu. Alternately, you may enter the countries keyword in the command window.
Panel Data Refers to samples of the same cross-sectional data observed at multiple points on time. A panel data observation has two dimensions, Xit. where i runs from 1 to n and denoted cross-sectional data or unit ant t runs from 1 to t and denotes the time of observation.
Fixed effects are constant across individuals, and random effects vary. For example, in a growth study, a model with random intercepts ai and fixed slope b corresponds to parallel lines for different individuals i, or the model yit=ai+bt. Kreft and De Leeuw (1998) thus distinguish between fixed and random coefficients.
Effects are fixed if they are interested in themselves or random if there is interest in the underlying population. Searle, Casella, and McCulloch (1992, Section 1.4) explore this distinction in depth.
To decide between Fixed effect and random effect run Hausman Test with stated Hausman hypothesis:
HN: random effect model is the most appropriate model
HA: Fixed effect Model is the most appropriate Model
According to Oscar Torres and Rayna 200, the test of ui is correlated with the regressors, the HN is they are not.
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