Question
Using R-Studio, estimate a regression equation to determine the effect of the real interest rates, the exchange rate and the GDP growth rate on the
Using R-Studio, estimate a regression equation to determine the effect of the real interest rates, the exchange rate and the GDP growth rate on the Merchandise trade (% of GDP). (All codes and regression output should be provided). NOTE: R-Studio should only be used for obtaining the regression output and the regression equation. (i) Write down the regression equation.
Year | Merchandise trade (% of GDP) | Real interest rates (%), | GDP growth (annual %) | Official exchange rate (per US$). |
2000 | 150.28 | 10.05 | -1.4 | 182.43 |
2001 | 149.12 | 16.63 | 2.3 | 187.32 |
2002 | 144.60 | 13.36 | 1.1 | 190.67 |
2003 | 146.56 | 9.81 | -0.6 | 193.88 |
2004 | 157.91 | 7.27 | 1.6 | 198.31 |
2005 | 162.57 | 6.42 | -2 | 199.88 |
2006 | 62.06 | -58.33 | 5.1 | 200.19 |
2007 | 63.64 | 5.91 | 7.2 | 202.35 |
2008 | 69.65 | 4.44 | 1.6 | 203.63 |
2009 | 60.78 | 13.56 | 3.9 | 203.95 |
2010 | 66.33 | 9.79 | 3.8 | 203.64 |
2011 | 78.56 | 11.91 | 5.3 | 204.02 |
2012 | 84 | 8.83 | 5.4 | 204.36 |
2013 | 77.98 | 14.11 | 3.7 | 205.39 |
2014 | 71.66 | 15.26 | 1.7 | 206.45 |
2015 | 61.76 | 9.54 | 0.7 | 206.45 |
2016 | 64.45 | 11.99 | 3.8 | 206.50 |
2017 | 64.89 | 10.67 | 3.7 | 206.50 |
2018 | 79.10 | 16.36 | 4.4 | 207.72 |
2019 | 108.37 | 7.30 | 5.4 | 208.50 |
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