Project Requirements

Your project report should contain all the following SIX sections:

Section 1. Choose ONE of the following series from WDI as the dependent variable:

Exports of goods and services (BoP, current US$)

Exports of goods and services as a percentage of GDP

Imports of goods and services (BoP, current US$)

Imports of goods and services as a percentage of GDP

Foreign direct investment, net inflows (BoP, current US$)

Foreign direct investment, net inflows as a percentage of GDP

Foreign direct investment, net outflows (BoP, current US$)

Foreign direct investment, net outflows as a percentage of GDP Current account balance (BoP, current US$)

Current account balance as a percentage of GDP

Section 2. Choose ANY FOUR series (EXCEPT the ones in Section 1 above) from WDI as independent variables.

Section 3. Collect data on the dependent and independent variables of at least 15 countries over a sample period of 10 years, i.e. your sample should have at least 150 country-year observations. In a table in the REPORT, provide a list of the sample countries, the sample period, the sample mean and the sample standard deviation for each of the five variables. (3 marks)

Section 4. Set a hypothesis for the effect of each independent variable on the dependent variable (i.e., four hypotheses). You need to provide relevant explanations/theories to justify each hypothesis. Use of any external source for justification should be cited. (16 marks)

Section 5. Using the data collected, estimate a fixed-effect model by using Excel (remember to adjust all variables through each individual country mean correction). Report the main findings in a table. (5 marks)

Section 6. Based on the findings, test for the hypotheses one by one. For each hypothesis, explain why it is either supported or not supported by the findings. (6 marks)