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

Std. Error

t-Statistic

Prob.

-0.396

0.402

-0.984

0.331

Inflation

Real GDP

0.141

0.036

3.937

0.000

0.352

0.368

0.956

0.345

0.159

0.046

2.052

0.001

Real Investment

Trading partner income

Relative prices

Exchange rate

Constant

0.014

0.002

6.456

0.000

0.434

0.424

1.025

0.311

-0.556

2.88E+08

-0.193

0.848

0.841

R-squared

Adjusted R-squared

F-statistic

0.829

70.345

Prob(F-statistic)

0.000

a. Identify the dependent and independent variables from the results

[3 Marks]

b. Derive the regression equation from the table above

[3 Marks]

c. Interpret the coefficients of significant variables d. Explain the R-Squared value

[9 Marks] [2 Marks]

e. Explain the F-value and its overall significance to the regression output [3 Marks]

TOTAL (20 MARKS)