Previous studies of exports performance in Ghana were carried out at the aggregate level. This current study performs a disaggregated analysis of exports of three major products, namely, timber, tourism, and gold. This kind of analysis is useful for developing sector-based export promotion policies. The results from one of the estimations are presented in the table below. Use the information in the table to answer the questions that follow. Use the 5% level of significance when needed.

Table 1: Regression output of exports of gold in Ghana Dependent Variable: Exports of gold

Variable Coefficient Inflation -0.396

Std. Error

0.402 0.036 0.368 0.046 0.002 0.424

2.88E+08

t-Statistic

-0.984 3.937 0.956 2.052 6.456 1.025

-0.193

results

Prob.

0.331 0.000 0.345 0.001 0.000 0.311 0.848

[3 Marks] [3 Marks] [9 Marks]

Real GDP

Real Investment

Trading partner income

Relative prices

Exchange rate

Constant -0.556

0.141 0.352 0.159 0.014 0.434

R-squared

Adjusted R-squared F-statistic Prob(F-statistic)

0.841

0.829 70.345 0.000

a. Identify the dependent and independent variables from the

b. Derive the regression equation from the table above

c. Interpret the coefficients of significant variables

d. Explain the R-Squared value

[2 Marks] [3 Marks]

e. Explain the F-value and its overall significance to the regression output

TOTAL (20 MARKS)