Abstract

The consumption of urban residents and the foreign exchange reserves are important indicators of economic development and between which there existed a stable relationship. Local polynomial regression estimation method of the non-parametric regression model is discussed and considering the historical data of China’s consumption of urban residents and foreign exchange reserves from 1981 to 2003, which was researched using the local polynomial regression estimation method of the non-parametric regression model, we built its non-parametric regression model and compare it with the polynomial fitting model. The results showed that non-parametric regression model is superior to polynomial fitting model.

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