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11:29 < Back Assignment 2.pdf To-do 111. lv. REQUIRED TASKS Your tasks involve two dimensions. First, you need to analyse the data (see Steps l, 2 and 3 in the next section). Second, you also need to perform a technical analysis by considering a hypothetical trading environment based on Ricardian model (see Step 4 in the next section). Accordingly, you are required to: Provide a visual representation of the relationship between openness and inequality by plotting a graph (use scatter plot) that shows the change in openness with respect to GINI index for these countries over the period between 1998 and 2014 (including all years, i.e., 1998, 1999, ..., 2014). Establish how being integrated with the rest of the world affected inequality in these two countries by looking at the correlation between their openness and GINI index. State and explain whether your data findings are in line with theory (Assume both Argentina and El Salvador are unskilled-labour abundant countries). Continue your technical analysis from your first report and state what would have happened to these countries once they are allowed to trade with each other based on our hypothetical scenario of Ricardian model. REQUIRED STEPS TO COMPLETE EACH TASK DATA ANALYSIS For data analysis, you need to follow Steps l, 2 and 3 given below. Step l. Step 2. Using data you obtained for Argentina and El Salvador, plot openness (as a percentage) against GINI index for each nation. Use graphs. one (or each country (us cburt type: you required to Ilse scatter plot). You need to use your openness calculations from Step I of Assignment l). Put openness (as a percentage) on the vertical axis and GINI index on the horizontal axis. Using data you obtained for Argentina and El Salvador, calculate the correlation coefficient (using CORREL command in excel) between Openness and the GINI Index for each nation.l Report and interpret this relationship in up to 200 words and state for which country this relationship is stronger. [Hint: The Gini index measures the area between the Lorenz curve and a hypothetical line Of absolute equality, expressed as a percentage Of the maximum area under the line. A Lorenz curve plots the cumulative percentages Of total income received against the cumulative number Of recipients, starting With the pckjrest individual. Thus a Gini index Of O represents perfect equality, While an index Of implies perfect inequality. The Gini index provides a convenient summary measure Of the degree Of inequality. International Trade Assignment 2, Semester 1, 2020 Page 2 the GINI is often used as a proxy for the ratio of skilled to unskilled wages in Dashboard empirical studies]. Calendar Notifications Inbox