A researcher investigating the factors related to a country's economic growth between 2005 and 2010 estimates the following model for a sample of countries (using cross sectional data): GROWTH = a + b x GDPH2005 + cx INV + d × EDUC+ ex RIGHTS + f * ELEC where: GROWTH is the country's economic growth (percent change of GDP per person at constant prices between 2005 and 2010); GDPH2005 is the log of the country's level of GDP per person in 2005 (US$ at 2005 prices); INV is the country's share of gross investment in fixed capital (Gross Fixed Capital Formation) as a percentage of GDP in 2005; EDUC is an indicator of the level of education of the population (total enrolment in secondary schools as a % of population aged 15 and over);
A researcher investigating the factors related to a country's economic growth between 2005 and 2010 estimates the following model for a sample of countries (using cross sectional data): GROWTH = a + b x GDPH2005 + cx INV + d × EDUC+ ex RIGHTS + f * ELEC where: GROWTH is the country's economic growth (percent change of GDP per person at constant prices between 2005 and 2010); GDPH2005 is the log of the country's level of GDP per person in 2005 (US$ at 2005 prices); INV is the country's share of gross investment in fixed capital (Gross Fixed Capital Formation) as a percentage of GDP in 2005; EDUC is an indicator of the level of education of the population (total enrolment in secondary schools as a % of population aged 15 and over);
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
Transcribed Image Text:A researcher investigating the factors related to a country's economic growth between 2005 and 2010
estimates the following model for a sample of countries (using cross sectional data):
GROWTH = a + b × GDPH2005 + cx INV + d x EDUC + ex RIGHTS + fx ELEC
where:
GROWTH is the country's economic growth (percent change of GDP per person at constant prices
between 2005 and 2010);
GDPH2005 is the log of the country's level of GDP per person in 2005 (US$ at 2005 prices);
INV is the country's share of gross investment in fixed capital (Gross Fixed Capital Formation) as a
percentage of GDP in 2005;
EDUC is an indicator of the level of education of the population (total enrolment in secondary schools as
a % of population aged 15 and over);
RIGHTS is an indicator of the strength of legal rights (0=weak to 12-strong);
ELEC is the percentage of population who have access to electricity;
The results of the estimation are:
Variables
GDPH2005
INV
EDUC
RIGHTS
ELEC
Constant
INV
RIGHTS
ELEC
EDUC
Coefficients
GDPH2005
Choose...
Choose...
True
False
-0.1322
Choose...
0.0129
0.0036
-0.0010
0.0034
0.6751
Choose... V
Standard
Errors
Choose... V
0.0170
0.0031
0.0013
0.0091
0.0010
0.1139
t-values
-7.7600
4.1900
2.8000
-0.1100
From the dropdowns select True for the variables that, according to the model's results (using a 5%
significance level), are positively associated with economic growth for the countries and the time period
covered by the data. For those that are not, select False.
3.5800
5.9300
p-values
0.0000
0.0000
0.0060
0.9120
0.0010
0.0000
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