ALL ANWSERS PLEASE BE COMPLETED BY A EXCEL GRAPH PLZ SHOW ANWSERS THROUGH GOOGLE TABLE

For this problem set you will use data from the World Bank and the United Nations Development Programme (UNDP) to study human development and economic growth in the countries of your choosing. You will need to get the data from the World Bank and combine that data with data I will provide into one file. Then you will need to analyze the data using a few basic Excel skills plus mastery of the economic issues discussed in class. Your assignment is this: analyze the relationship between the human development index and economic growth in Mexico and Benin. According to the World Bank, Mexico is an upper-middle income country and Benin is a low-income country. Unlike Problem Set 1 where I gave you all the data, you will need to visit the World Bank's Data Bank in order to download some of the World Development Indicators for Mexico and Benin. The website is: https://databank.worldbank.org/data/source/world-development-indicators From the Data Bank, you will first need to select Mexico and Benin from among the list of countries. Then, you will need to select the following indicators: ? GNI (constant 2015 US$) ? Population, total ? Life expectancy at birth, total (years) ? GDP (current US$) ? Labor force, total ? Gross capital formation (current US$) ? Gross savings (current US$) Finally, you will need to select which years you want the data from. For this exercise, simply select the years 2000-2020. After you have gotten the above data from the World Bank, you will need to get an Excel data file from D2L called "PS 2 - HDI Data.xlsx". This file contains the maximum and minimum values for each HDI component in each year. It also includes the Consumer Price Index (CPI) for U.S. dollars. Finally, because the World Bank does not have data on education, the files includes data for Mexico and Benin on the following two indicators: ? Expected years of schooling (years) ? Mean years of schooling (years) 2 Once you have all the data from these two sources, combine them into a single Excel file. Each column should be a different year and each row should be an indicator for a single country. Make sure you have both countries in a single file. Below is an example of how your file should look. Note not every variable will have a min and max value. Now that you have the data set up, calculate each component of the Human Development Index (HDI) for each of your chosen countries. Remember to convert GNI (constant 2015 US$) into GNI per capita and to take the natural log (????). Also remember that the minimum value of each education index is zero and the minimum value for life expectancy is 20.

1. Calculate the Gross National Income Index, I(GNI), for each country and every year. What is the I(GNI) for each country in 2001?

2. Calculate the Education Index, I(E), for each country and every year. What is the I(E) for each country in 2006?

3. Calculate the Life Expectancy Index, I(LE), for each country and every year. What is the I(LE) for each country in 2011?

4. Calculate the Human Development Index, HDI, for each country and every year. What is the HDI for each country in 2016? Now go back and calculate each country's non-Income HDI. [Hint: This is the HDI without the I(GNI) component, so make sure you take the square root of I(E) and I(LE) and not the cube root] show two scatter plots, one for each country, that shows non-Income HDI (y-axis) relative to its GNI per capita (x-axis) across all years. Make sure you graph each country's nonIncome HDI values against that same country's GNI per capita values. To each scatter plot, add a linear trendlines and have Excel display both equations on the chart. 5. What is the equation for the linear trendline for each country? For each country, is the relationship between non-Income HDI and GNI per capita positive or negative? Now calculate the difference between I(GNI) and HDI for each country in each year. 3

6. For each country, what is the average difference between I(GNI) and HDI? What does this tell you about each country's income relative to its performance on the other development indicators? [Hint: recall the end of Module 6, Lecture 1]

7. Is the World Bank's income criterion a useful way of classifying countries by their development levels? Why or why not? Now we are going to turn to looking at indicators of economic growth for each country. Start off by converting GDP, gross capital formation, and gross savings (which are all in current US$) into constant or real US$ using the Consumer Price Index (CPI). Next, show indicators for GDP per capita, production (GDP) per worker (labor force), capital (gross capital formation) per worker (labor force), and savings (gross savings) per worker (labor force).

8. For each country, calculate the annual GDP growth rate (the percentage change in GDP from one year to the next). Then take the average growth rate for each country. What is each country's average rate of GDP growth from 2001 to 2021? Show a scatter plot for each country in which you graph production per worker (x-axis) in relation to capital per worker (y-axis) and also production per worker (x-axis) in relation to savings per worker (y-axis). To each country's scatter plot, add two linear trendlines, one for each grouping of data, and have Excel display both equations on the chart.

9. Looking at the two trendlines, which country is increasing capital per worker (relative to production per worker) at a higher rate?

10. Looking at the two trendlines, which country is increasing savings per worker (relative to production per worker) at a higher rate?

11. Based on your understanding of sources of growth, what are the key characteristics of these two countries that you think explain why they find themselves at their current income levels?

12. If you were economic minister of the poorer of these two countries, what kinds of policies might you suggest to help bring your country up to the income level of the richer country?

A B C D E F G H K Country Na Country Co Series Name 1990 [YR19 1991 [YR19 1992 [YR19 1993 [YR19 1994 [YR19 1995 [YR19 1996 [YR19 1997 [YR19 Benin BEN Expected years of schooling (years) 5.3 5.4 5.5 5.7 5.8 5.9 6 6.1 Mexico MEX Expected years of schooling (years) 10.6 10.5 10.5 10.4 10.5 10.7 10.8 11 Miniumum MIN Expected years of schooling (years) 2.1 2.1 2.2 2.3 2.3 2.4 2.5 2.6 Maximum MAX Expected years of schooling (years) 17.4 17.3 17.3 17.3 17.3 18.8 19.4 20.2 Benin BEN GDP (constant 2010 US$) 3.03E+09 3.16E+09 3.26E+09 3.45E+09 3.51E+09 3.73E+09 3.89E+09 4.11E+09 Mexico MEX GDP (constant 2010 US$) 6.54E+11 6.82E+11 7.06E+11 7.19E+11 7.55E+11 7.07E+11 7.55E+11 8.07E+11 Benin BEN GNI (constant 2010 US$) 2.97E+09 3.11E+09 3.13E+09 3.38E+09 3.44E+09 3.65E+09 3.81E+09 4.05E+09 Mexico MEX GNI (constant 2010 US$) 6.34E+11 6.64E+11 6.88E+11 7.03E+11 7.37E+11 6.82E+11 7.3E+11 7.87E+11 Miniumum MIN GNI per capita (constant 2010 US$) 366 373 334 294 229 213 226 432 Maximum MAX GNI per capita (constant 2010 US$) 100233 95458 92326 91853 96179 100767 101093 103349Q R S T 0 P K M N C D E F G H B 2001 [YR200 2002 [YR200 2003 [YR200 2004 [YR200 2005 [YR200 2006 [YR200 2007 [YR200 2008 [YR200 2009 [YR200 2010 [YR201 2011 [YR201 2012 [YR201 2013 [YR201 2014 [YR201 2015 [YR201 2016 [YR201 2017 [YR201 51.8 52.2 A 48.3 49 49.8 50.6 51.4 45.5 46.2 46.9 47.6 1.4 1.5 1.5 39.7 40.7 41.7 42.7 43.6 44.6 1.4 Country Name Country Code Series Name 1.3 1.3 1.4 1.4 1.4 1.4 1.4 1.3 4.9 4.9 4.9 4.9 4.9 2 Miniumum MIN Life expectancy at birth, total (years) 1.1 1.2 1.2 1.3 1.3 3.8 3.9 4.2 4.4 4.7 4.9 4.9 327 305 294 286 3 Miniumum MIN Mean years of schooling (years) 3.1 3.4 3.6 2.9 306 305 312 313 319 325 MIN Expected years of schooling (years) 292 294 291 301 84.1 300 83 83.1 83.3 83.5 83.6 83.8 84 4 Miniumum 306 14.1 Miniumum MIN GNI per capita (constant 2015 US$) 302 82.4 82.6 82.7 82.8 82.3 14 14 14.1 14.1 81.4 81.7 81.9 82.1 13.7 13.7 13.8 13.8 13.9 14 Life expectancy at birth, total (years) 13.3 13.6 20.3 20.4 20.4 23.3 22.9 22.9 6 Maximum MAX 12.7 12.7 12.8 12.9 19.5 19.3 20.3 19.8 20.1 105,672 20.6 20.7 20.3 19.2 111,662 Maximum Mean years of schooling (years) 105,508 20.3 105,672 MAX 86,768 83,863 85,082 84,758 103.42 8 Maximum MAX Expected years of schooling (years) 20.1 84,697 81,612 81,331 82,864 85,126 96.87 98.29 99.88 100.00 101.26 76,089 78,846 79,904 92.00 94.90 9 Maximum MAX GNI per capita (constant 2015 US$) 76,771 75.89 79.69 82.40 85.05 87.48 90.84 90.52 77.61 8.74 10 United States USA Consumer price index (CPI) 74.71 8.36 8.40 8.60 8.60 8.14 8.01 8.25 8.49 14.04 14.20 14.81 7.49 7.87 7.88 7.95 13.87 14.64 11 6.82 6.98 7.13 7.29 13.40 13.44 13.70 12.91 13.03 13.21 13.27 2.8 3.2 3.3 12 Mexico MEX Mean years of schooling (years) 12.03 12.37 12.65 12.75 12.80 2.8 2.8 2.7 2.8 2.8 2.8 2.8 2.7 11.4 12 12.6 12.6 11 13 Mexico MEX Expected years of schooling (years) 2.4 2.5 2.6 2.6 2.7 8.7 9.1 9.5 9.9 10.3 10.6 14 Benin BEN Mean years of schooling (years) 6.3 6.5 6.7 7.4 7.9 8.3 15 Benin BEN Expected years of schooling (years) 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38