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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
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
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