Question
A researcher investigating the factors related to a country's economic growth between 2005 and 2010 estimates the following model for a sample of countries (using
A researcher investigating the factors related to a country's economic growth between 2005 and 2010 estimates the following model for a sample of countries (using cross sectional data):
GROWTH = a + b GDPH2005 + c INV + d EDUC + e RIGHTS + f RD
where:
GROWTH is the country's economic growth (percent change of GDP per person at constant prices between 2005 and 2010);
GDPH2005 is the log of the country's level of GDP per person in 2005 (US$ at 2005 prices);
INV is the country's share of gross investment in fixed capital (Gross Fixed Capital Formation) as a percentage of GDP in 2005;
EDUC is an indicator of the level of education of the population (total enrolment in secondary schools as a % of population aged 15 and over);
RIGHTS is an indicator of the strength of legal rights (0=weak to 12=strong);
RD is the R&D expenditure as a percentage of GDP
The results of the estimation are:
Variables | Coefficients | Standard Errors | t-values | p-values |
GDPH2005 | -0.1444 | 0.0199 | -7.2600 | 0.0000 |
INV | 0.0275 | 0.0045 | 6.1300 | 0.0000 |
EDUC | 0.0042 | 0.0013 | 3.2300 | 0.0020 |
RIGHTS | -0.0050 | 0.0116 | -0.4300 | 0.6680 |
RD | 0.0340 | 0.0316 | 1.0800 | 0.2870 |
Constant | 0.7429 | 0.1806 | 4.1100 | 0.0000 |
From the dropdowns select True for the variables that, according to the model's results (using a 5% significance level), are negatively associated with economic growth for the countries and the time period covered by the data. For those that are not, select False.
GDPH2005 | Answer 1Choose...TrueFalse |
RD | Answer 2Choose...TrueFalse |
RIGHTS | Answer 3Choose...TrueFalse |
EDUC | Answer 4Choose...TrueFalse |
INV | Answer 5Choose...TrueFalse |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started