The manufacturing sector is considered as one of the major sources of substantial employment generation in both developed and developing economies. But in Zambia, its contribution is still less than the highest standard set at 2014 when it accounted for 223 681 jobs of which 7.1 percent of these were formal jobs. In total, manufacturing sector jobs had represented 3.8 percent of the 5.9 million total employed population (Central Statistical Office, 2016). As a Student of Econometrics II, you are tasked to establish the determinants of the growth of the manufacturing sector in Zambia. a) Mention four relevant variables would you include in the model. b) Suppose you collect time series data on the proposed variables, explain the steps that you would take to finally decide which model you would run. Note: Explanation must be within ten (10) sentences.
The manufacturing sector is considered as one of the major sources of substantial employment generation in both developed and developing economies. But in Zambia, its contribution is still less than the highest standard set at 2014 when it accounted for 223 681 jobs of which 7.1 percent of these were formal jobs. In total, manufacturing sector jobs had represented 3.8 percent of the 5.9 million total employed population (Central Statistical Office, 2016). As a Student of Econometrics II, you are tasked to establish the determinants of the growth of the manufacturing sector in Zambia.
a) Mention four relevant variables would you include in the model.
b) Suppose you collect time series data on the proposed variables, explain the steps that you would take to finally decide which model you would run. Note: Explanation must be within ten (10) sentences.
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