...The relationship between Life Expectancy at birth and GDP per capita (PPP) Candidate: Teacher: Candidate number: Date of submission: Word Count: 2907 Section 1: Introduction In a given country, Life Expectancy at birth is the expected number of years of life from birth. Gross domestic product per capita is defined as the market value of all final goods and services produced within a country in one year, divided by the size of the population of that country. The main objective of the present project is to establish the existence of a statistical relation between Life Expectancy (y) at birth and GDP per capita (x). First, we will present in Section 2 the data, from an official governmental source, containing Life Expectancy at birth and GDP per capita of 48 countries in the year 2003. We will put this data in a table ordered alphabetically and at the end of the section we will perform some basic statistical analysis of these data. These statistics will include the mean, median, modal class and standard deviation, for both Life Expectancy and GDP per capita. In Section 3 we will find the regression line which best fits our data and the corresponding correlation coefficient r. It is natural to ask if there is a non-linear model, which better describes the statistical relation between GDP per capita and Life Expectancy. This question will be studied in Section 4, where we will see if a logarithmic relation of type y=A ln(x+C) + B, is a better model. ...
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...the change in Gross Domestic Product (GDP) from years 1970-2000. GDP is a very important tool in measuring the economic condition of a country. When GDP is increasing from year to year, it would be safe to assume income, labor opportunities, and overall business would increase as well. I decided to discuss the change of GDP opposed to total GDP, for an understanding of the changes in the select macroeconomic variables that significantly affect GDP. The purpose of this study is to attempt to determine what factors affect the change in GDP, and what arrangements can be made to result in more accurate data. This can be helpful to any nation’s economy. If accurate results are found to determine what affects the change in GDP, then economic policies can be pursued and implemented to aid in the steady increase of a countries GDP. The change in GDP is not subject to any certain variables, for many variables affect the change in GDP. I chose three variables that I believe will have a considerable impact on the change in GDP: change in consumption, change in investment, and change in unemployment rate. It is apparent that consumption and investment are directly related in finding the total GDP. I believe the change in consumption to have a consistent positive relationship with the change in GDP; the more consumers spend the more likely GDP will increase. I believe change in investment will also provide a positive relation to change in GDP. A strong investment should provide...
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...Question 1 (i) Trade balance, GDP and Ratio of the trade balance to GDP in Finland(1980-2006) | Year | Trade Balance | GDP | Ratio of the trade balance to GDP | | Billion (euro) | Billion (euro) | | | (TB) | (Y) | (TB/Y) | 1980 | -0.461 | 33.267 | -0.01 | 1981 | 0.363 | 37.593 | 0.01 | 1982 | 0.049 | 42.258 | 0.00 | 1983 | -0.040 | 47.163 | 0.00 | 1984 | 1.298 | 52.695 | 0.02 | 1985 | 0.479 | 57.345 | 0.01 | 1986 | 0.678 | 61.492 | 0.01 | 1987 | 0.137 | 66.766 | 0.00 | 1988 | -0.468 | 75.728 | -0.01 | 1989 | -1.441 | 84.801 | -0.02 | 1990 | -1.200 | 89.535 | -0.01 | 1991 | -0.353 | 85.767 | 0.00 | 1992 | 0.690 | 83.124 | 0.01 | 1993 | 3.832 | 83.817 | 0.05 | 1994 | 5.004 | 88.159 | 0.06 | 1995 | 7.261 | 96.003 | 0.08 | 1996 | 7.425 | 99.080 | 0.07 | 1997 | 8.625 | 107.633 | 0.08 | 1998 | 10.309 | 117.104 | 0.09 | 1999 | 12.269 | 122.642 | 0.10 | 2000 | 13.485 | 132.324 | 0.10 | 2001 | 14.816 | 139.855 | 0.11 | 2002 | 15.348 | 144.007 | 0.11 | 2003 | 12.170 | 146.226 | 0.08 | 2004 | 12.117 | 152.236 | 0.08 | 2005 | 8.650 | 157.358 | 0.05 | 2006 | 10.991 | 168.162 | 0.07 | There is an overall increasing trend for the behavior of trade balance/ GDP growth in Finland over 1980-2006, which shows that the net export of the domestically produced products in Finland is rising. (ii) | Correlation coefficient | (TBY, dyt-2) | 0.14 | (TBY, dyt-1) | 0.40 | (TBY, dyt) | 0.27 | (TBY,...
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...RESEARCH SYNOPSIS/PROPOSAL Relation between the stock market and GDP Submitted by: Abstract: This research will analyze the stock market earnings impact on the GDP growth of a developing country i.e. Pakistan. This study will help to establish a relationship between stock market earnings and economic (GDP) growth of the country, basically it will answer this question, “How the stock market earnings affect the GDP?” In this research, I shall apply the co integration and error correction model to the stock market performance and GDP and shall try to segregate the role of primary from secondary market and find out linkages between secondary market and growth that may impact on GDP of Pakistan. I shall make an effort to find indicators that lead to growth by having stock market earnings at the back. Table of Contents with List of Tables and/or Illustrations Serial number|Description|Page numbers| 1|Title|i| 2|Abstract|ii| 3|Table of contents|1| 4|Introduction|2| 5|Research Question|3| 6|Research Objective|3| 7|Literature Review|4| 8|Significance|5| 9|Research Methodology|6| 10|Data Collection Sources|6| 11|Data Collection Tools|6| 12|Hypothesis|6| 13|Research Model|7| 14|Theoretical Framework|7| 15|Type of research|8| 16|Sampling technique|8| 17|Data processing, analysis and statistical tools|8| 18|Reference|9| Theoretical framework Illustration…………………………………….7 Introduction: GDP is the key indicator of the economic growth of a developing country...
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...the present text. Citations should refer to a Working Paper ofthe International Monetary Fund The v i e w s e x p r e s s e d a r e t h o s e o f the a u t h o r ( s ) a n d d o n o t necessarily represent those of the Fund. WP/98/68 INTERNATIONAL MONETARY FUND Policy Development and Review Department Inflation, Disinflation, and Growth Prepared by Atish Ghosh and Steven Phillips1 Authorized for distribution by Timothy Lane May 1998 Abstract Although few would doubt that very high inflation is bad for growth, there is much less agreement about moderate inflation's effects. Using panel regressions and a nonlinear specification, this paper finds a statistically and economically significant negative relationship between inflation and growth. This relationship holds at all but the lowest inflation rates and is robust across various samples and specifications. The method of binary recursive trees identifies inflation as one the most important statistical determinants of growth. Finally, while there are short-run growth costs of disinflation, these are only relevant for the most severe disinflations, or when the initial inflation rate is well within the single-digit range. JEL Classification Numbers: E31, 040. Keywords: inflation, growth determinants, growth regressions, robustness. Authors' E-Mail Addresses: Aghosh@imf.org; Sphillips@imf.org 1 We would like to thank Kadima Kalonji for research assistance, and Alan Taylor and Maurice Obstfeld for making available...
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...Final Project Part One: Impact of Global Financial Crisis on Air Transport in the U.S Embry-Riddle Aeronautical University MBAA 522 – Business Research Methods For: Dr. Barry Bauer March 15, 2015 Introduction This research paper examines the origins of the 2008/2009 world financial crisis and the impact that the crisis had on air transport in the United States of America. Although the crisis originated in the economies of North America and Europe, its effects were global with particular serious implications for economies of the developing countries including my country, Zambia. The maximum blame of the crisis is pointed at the money lenders who created such problems as it is believed that it was the lenders in the developed nations who lent funds to people with poor credit and a high risk of default. Therefore, in an effort to address the crisis, the American Federal Reserve flooded the markets with increasing capital liquidity in order not only to lower interest rates but to also broadly depress risk premiums as investors sought riskier opportunities to bolster their investment returns (Craig, 2013). As we all know that aviation is one of the most important pillars of the global economy as it provides millions of jobs globally and contributes heavily in the global gross domestic products of a number of countries. To this effect, the aviation sector which is one of the fastest growing industries had to face negative growth rate while some aviation companies were...
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...factors individually, one can get a general sense of the current state of the economy and possibly make future predictions as to where the economy is headed. Since 1970, GDP has steadily grown linearly. There has only been a few years where the real GDP has dropped but only by an insginificant amount. However, there was one year where the GDP dropped by $126 billion in the year 1982. During this year, the United States experienced a recession. However, the following year, the GDP was able to grow more than the amount it decreased the previous year; it increased $300 billion, thus, offsetting the loss of the prior year. After this minor recession, there was little to no decrease in GDP in the subsequent years. From 1997-2000, GDP experienced a huge amount of growth each year for four consecuvtive years. This growth was during the internet stock bubble. There were many new internet startups during these years and many people investing into them. Also, because of such high GDP these years, there was a government surplus, but only for this four year period. However, when the internet stock bubble burst in 2001, the GDP did not increase nearly as much as it had the four prior years. However, throughout the rest of the early 2000s, the GDP continued to increase without any major hazards. Nonetheless, this growth in GDP was only...
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... IV. Methodology V. Empirical Results and Interpretation 1. Summary of Data 2. Regression of the Model 3. New Model of the Study 4. Testing for Multicollinearity 5. Testing for Heteroscedasticity 6. Testing for Autocorrelation 7. Correction for Autocorrelation 8. Final Model of the Study VI. Conclusion and Recommendations VII. Sources I. Introduction Background of the study Gross domestic product (GDP) is total output of...
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...[Cover page] Policy Analysis Unit (PAU) Working Paper Series: WP 0604 Inflation and Economic Growth in Bangladesh: 1981-2005 Shamim Ahmed Md. Golam Mortaza December 2005 Policy Analysis Unit (PAU) Research Department, Bangladesh Bank Head Office, Dhaka, Bangladesh (www.bangladeshbank.org.bd) (www.bangladesh-bank.org) Policy Analysis Unit* (PAU) Working Paper Series: WP 0604 Inflation and Economic Growth in Bangladesh: 1981-2005 Shamim Ahmed Research Economist, Policy Analysis Unit Research Department Bangladesh Bank Md. Golam Mortaza Senior Research Associate Centre for Policy Dialogue December 2005 Copyright © 2005 by Bangladesh Bank * The Bangladesh Bank (BB), in cooperation with the World Bank Institute (WBI), has formed the Policy Analysis Unit (PAU) within its Research Department in July 2005. The aim behind this initiative is to upgrade the capacity for research and policy analysis at BB. As part of its mandate PAU will publish, among other, several Working Papers on macroeconomic research completed by its staff every quarter. The precise topics of these papers are chosen by the Resident Economic Adviser in consultation with the PAU members. These papers reflect research in progress, and as such comments are most welcome. It is anticipated that a majority of these papers will eventually be published in learned journals after the due review process. Neither the Board of Directors nor the management of Bangladesh Bank, nor WBI, nor any agency...
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...impact on the Economy’s GDP Matthew Magana Abstract This paper examines whether increases in military spending have a positive or negative impact on the U.S. Gross Domestic Product (GDP). The paper focuses on the three North American economies: Canada, Mexico and the United States as models to develop a case. It will also illustrate the utilization of multiple economic tools to produce variable outcomes to analyze the full spectrum of economics. It will also discuss the multiple statistical models such as Granger causality and Vector autoregression and the asymmetric results produced. Increased U.S. Military Spending and its impact on the Economy Given the long-accepted, theoretical direct relationship between investment and economic growth, if defense spending has a negative impact on investment, then it would seem reasonable that defense spending would have an adverse impact on economic growth. This was exactly the findings of two studies published in the seventies, zymanski (1973) and Lee (1973). Some studies attribute the negative effect of defense spending on economic growth to reduced investment. Another study argues that defense spending restricts export growth and economic growth because military expenditures compete for the same resources used in the production of exports. Which may also be a understood trade off for military spending vs. export and economic growth. However, other studies were unable to find any stable relationship between military spending...
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...OUTLINE I. A brief description of this country in terms of demographics, language, currency, political system, predominant industries, and current (i.e. last year) economic indicators such as nominal GDP, GDP per capita, unemployment, budget deficit (% of GDP), balance of payments accounts (% of GDP), and inflation. II. Brief description of the behavior of various economic indicators at the last 20 years III. Brief description of the behavior of various economic indicators for at the last 20 years IV. The relationship between the accounts in the balance of payments, average interest rate, and the government budget balance. Is there any relationship among these variables that the economic theory tells us? 1. A brief description of this country in terms of demographics, language, currency, political system, predominant industries, and current (i.e. last year) economic indicators such as nominal GDP, GDP per capita, unemployment, budget deficit (% of GDP), balance of payments accounts (% of GDP), and inflation. The country has recorded a population of 62.3 million in 2010 up from 52.4 million in 1960. The analysis shows an increase in population growth by about 18% over the last five decades. The world statistics indicates that the UK’s population accounts for 0.9% of the total world’s population. The results show that in every 112 persons living on the planet earth, one of them is a resident of the UK (The trading economics.com n.p). Politics and employment ...
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...Regime-switching effects of debt on real GDP per capita the case of Latin American and Caribbean countries Tsangyao Chang ⁎, Gengnan Chiang Department of Finance, Feng Chia University, Taichung, Taiwan a r t i c l e i n f o a b s t r a c t In this paper, we try to investigate how the debt and real GDP per capita relationship varies with indebtedness levels and other country characteristics in a balanced panel of 21 developing Latin American and Caribbean countries over the period 1992–2006. The empirical results indicate that there exist two threshold values of 32.88% and 55.89%. The latter is lower than the Maastricht criterion and Stability and Growth Pact of a total external Debt per GDP ratio at 60% in the OECD countries. Both thresholds divide our panel into three regimes. In the middle (stimulus) regime, the Debt per GDP ratio has a positive impact on real GDP per capita, which is consistent with the stimulus view (Eisner, 1984). However, the impact becomes negative and consistent with the crowding-out view (Friedman, 1977, 1985) in the left and right (crowding-out) regimes. Based on our findings, we find no supportive evidence for Ricardian view (Barro, 1989). Therefore, our empirical results have important implications for fiscal policymakers in these Latin American and Caribbean countries. © 2011 Elsevier B.V. All rights reserved. Article history: Accepted 13 June 2011 JEL classification: C4 E6 H3 H6 Keywords: Debt per GDP ratio Real GDP per capita Stimulus view Crowding-out...
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...economic concern in a South American country and write a report on my findings. The country I selected is Brazil. I chose to research data sets for the economic concern, Gross Domestic Product (GDP). In this report I will discuss the relationship between GDP and Brazil’s economy and trends in data sets, which are supported with statistical evidence. The Federative Republic of Brazil, commonly known as Brazil, is the largest country in South America and the world's fifth largest country by geographical area and by population. With over 190 million people it is the largest Portuguese-speaking country in the world and the only one in the Americas. There are only two countries in South America that Brazils borders do not touch, Ecuador and Chile. “Its current Constitution defines Brazil as a Federal Republic,” (Wikipedia, 2011). According to the International Monetary Fund and the World Bank (2011), the Brazilian economy is the world's fastest growing ranking as the eighth largest economy at market exchange rates and the seventh largest by purchasing power parity (PPP). Its current GDP (PPP) per capita is $10,200, putting Brazil in the 64th position according to World Bank data. The gross domestic product (GDP) is one of the measures of national income and input for a given country's economy. GDP is defined as the total cost of all finished goods and services produced within the country in a predetermined period of time (usually a 365-day year). It is sometimes regarded as the sum...
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... ECO 101-007 Prof. Sanyour Chapter 27 Macroeconomic Relationship In this chapter 27, I learned about three basic relationships in the economy: income and consumption, the interest rate and investment, and change in spending and change on output. Consumption is the largest aggregate in the economy. This section develops the consumption and saving schedules and describes their main characteristics. Investments consist of expenditures on new plants, capital equipment, machinery, inventories and construction. The purchase of capital goods depends on the rate of return that business firm expect to earn from an investment and on the real rate of interest they have to pay for the use of money. Because firms are anxious to make profitable investment and to avoid unprofitable ones, they undertake all investments that have an expected rate of return greater than the real rate of interest and do not undertake an investment when the expected rate of return is less than the real interest rate. The relationship between the real interest rate and the level of investment spending is an inverse one; the lower the interest rate, the greater the investment spending. It is illustrated by a downsloping investment demand curve. This curve can be shifted by six factors that can change...
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...in developing countries significantly. It is the nature of capital to move from places where it is plentiful to where it is scarce, provided there is no barrier to cross the border. Return on new investment is higher where capital is scarce. This is an incentive for people to save more (leading to enhanced capital formation) in developing countries as these countries are in general capital poor. For the same reason, foreign individuals and companies seek to invest their surplus capital in developing countries. Thus, this channel in turn, can help the recipient countries to accelerate their growth rate and subsequently improve their living standard (Lieehetta, 2006). In this paper we analyze the impact of Capital account liberalization on GDP growth of 32 countries for the year 2008, details are reported in Appendix 1. This paper consists of six sections. The next section descriptive statistics Section - 3 data sources. Section - 4...
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