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INV Choose... Choose... False True EDUC Choose Choose... False True RIGHTS Choose Choose... False True ELEC Choose Choose... False True GDPH2005 [Choose... Choose... False True

INV Choose... Choose... False True EDUC Choose Choose... False True RIGHTS Choose Choose... False True ELEC Choose Choose... False True GDPH2005 [Choose... Choose... False True

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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INV Choose... Choose... False True EDUC Choose... Choose... False True RIGHTS Choose... Choose... False True ELEC Choose... Choose... False True GDPH2005 [Choose... Choose... False True
Transcribed Image Text:INV Choose... Choose... False True EDUC Choose... Choose... False True RIGHTS Choose... Choose... False True ELEC Choose... Choose... False True GDPH2005 [Choose... Choose... False True
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 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 Coefficients -0.1322 0.0129 0.0036 -0.0010 0.0034 0.6751 Standard Errors 0.0170 0.0031 0.0013 0.0091 0.0010 0.1139 t-values -7.7600 4.1900 2.8000 -0.1100 3.5800 5.9300 p-values 0.0000 0.0000 0.0060 0.9120 0.0010 0.0000 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.
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 x 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 Coefficients -0.1322 0.0129 0.0036 -0.0010 0.0034 0.6751 Standard Errors 0.0170 0.0031 0.0013 0.0091 0.0010 0.1139 t-values -7.7600 4.1900 2.8000 -0.1100 3.5800 5.9300 p-values 0.0000 0.0000 0.0060 0.9120 0.0010 0.0000 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.
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