Question
1) Using the data you obtained for Armenia and Costa Rica, calculate the correlation coefficient (using CORREL command in excel) between openness and GDP per
1) Using the data you obtained for Armenia and Costa Rica, calculate the correlation coefficient (using CORREL command in excel) between openness and GDP per capita (which is a proxy for economic development) for each nation. Report and interpret this relationship and state for which country this relationship is stronger. Correlation - Armenia : 0.102643273 , Costa Rica : -0.873690586
2) Using the data you obtained for Armenia and Costa Rica, calculate the correlation coefficient (using CORREL command in excel) between Openness and the GINI Index (which is a proxy for the ratio of skilled to unskilled wages for each nation in empirical studies).1 Report and interpret this relationship and state for which country this relationship is stronger.
Correlation - Armenia : 0.494817181 , Costa Rica : 0.196984565
3)Assume that both Armenia and Costa Rica are unskilled-labour abundant. First define, Stolper-Samuelson theorem and then check whether your data findings from Step 2 are in line with the Stolper-Samuelson theorem. Explain your answer..
The Correlation data is calculated and given in bold thus just need guidance on how to explain and interpret the relationship.
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