Questions 1 and 2 require you to obtain data for Paraguay and Poland.

Obtain country-level data on:

I. Imports of goods and services (in current US$)

II. Exports of goods and services (in current US$)

III. GDP (in current US$)

IV. GDP per capita (in current US$)

V. GINI Index (World Bank estimate) from the World Banks World Development Indicators (http://databank.worldbank.org/data/reports.aspx?source=world-developmentindicators).

For simplicity, use data measured in current US dollars ($) as indicated above. Pick data ranging from 2001 to 2014.

1. Calculate openness as a percentage for Paraguay and Poland. Explain how you calculated openness, i.e., write down the formula. Using a graph of Openness (as a percentage) versus time, explain in up to 200 words how openness has changed for these countries from 2001 to 2014. Put Paraguay and Poland in the same graph and make sure your graph is properly labelled.

2.Explain in up to 200 words the relationship between Openness and economic development by calculating the correlation coefficient between GDP per capita (proxy for economic development) and Openness for Paraguay and Poland, respectively. [Here you have to use the CORREL command in Excel].