Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 The Kazakh economy is an export oriented economy (both goods and labor), where trade and personal remittances are thought to play a significant

image text in transcribed
Question 1 The Kazakh economy is an export oriented economy (both goods and labor), where trade and personal remittances are thought to play a significant role in driving growth. Its high degree of interdependence with the Russian economy also plays a significant role in driving growth. To investigate the main drivers of GDP growth in Kazakhstan, you consider 3 indicators as independent variables: trade (as % of GDP), personal remittances recieved (as % of GDP), and Russia's GDP growth (annual %) Assume that data from 1998 to 2019 can be considered a representative sample of the evolution of the Kazakh and Russian economies. Answer the following, and use a 0.05 as the default alpha level: A) Run a multivariate regression (using the ToolPak) using a model where GDP growth in Kazakhstan is the dependent variable, and all three other variables (trade, remittances and Russian GDP growth) are included. Present the results. B) Comment on goodness of fit and statistical significance of the model as a whole C) Are all variables in the model statistically significant? Why? D) Based on the regression results, is the relationship between Russian GDP growth and Kazakh GDP growth significant? E) As a result of international sanctions after Russia's invasion of Ukraine, the IMF forecasts that Russia will experience a negative GDP growth rate in 2022. Based on the regression results, what can we predict will happen to Kazakh GDP growth? Make sure to use the regression coefficient in your answer. ill in This table with the data you have downloaded and format them to one decimal GDP Growth () Trade (% of GDP) Remittances ( of GDP Russian GDP growth () 1998 .1.9 $5.20 0.028913153 -5.30 1999 2.7 82.58 0.021338617 6.40 2000 9.8 105.70 0.368863212 10.00 2001 13.5 92.85 0.383878364 5.10 2007 9.8 94.03 0.451556782 4.70 2003 9.3 91.46 0.136856071 7.30 2004 9.6 96.41 0.132966722 7.20 2005 97 97.76 0.108574816 6.40 2006 10.7 91.45 0.103192421 8.20 2007 8.9 92.16 0.136377271 8.50 2008 3.3 94.29 0.094101491 5.20 2009 1.2 75.77 .171887511 7.80 2010 7.3 74.14 0.15235412 4.50 2011 7.4 73.12 0.093293645 4.30 2012 4.8 73.72 0.136051344 4.02 2013 6 65.41 0.144275579 1.76 2014 4.2 64.97 0.181279479 0.74 015 1.2 53.05 0.159592265 -1.97 2016 1.1 60.31 0.279844172 0.19 2017 4.1 56.83 0.335972108 1.83 2018 4.1 63.53 0.344618824 2.81 2019 1.5 64.86 0.278573143 2.20

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Trigonometry

Authors: Mark Dugopolski

3rd Edition

0321899830, 9780321899835

More Books

Students also viewed these Mathematics questions