A Comparative Analysis of the Neural Networks and Vector Autoregressive models: Using Economic variables
The study conducted a comparative analysis of ANN and VAR models in modelling and forecasting foreign
direct investment and unemployment of South Africa obtained from SARB. The study employed both MSE and MAE to
assess the performance accuracy of the model(s). The results obtained shows that ANN is superior in modelling and
forecasting foreign direct investment and unemployment rate of South Africa.
Keywords - Artificial Neural Networks, VAR, Error metrics