Stat2000 quantitative analysis group assignment describe

Question

Quantitative Analysis Group Assignment

Research topic: Economic growth, private credit and remittances.

Objective: To examine the relation of economic growth with private credit and remittances.

1. Describe the data (e.g., mean, standard deviation, skewness, kurtosis, 1st quartile, median, 3rd quartile, max, and min)

2. Prepare correlation matrix

3. Report regression results

4. Write a report stating clearly the objectives of this research, background (i.e., the importance of this research), the hypothesis, analysis of your findings, and the conclusion

Methodology

We apply multiple regression analysis to estimate the following baseline model.

Growth = β₀ + β₁ × Private credit + β₁ × Remittances + β₃ × Manufacturing + β₄ × Services + β₅ × Foreigndirectinvestment + β₆ × Workforceparticipation + β₇ ×Wages + β₈ × Inflation + β₉ × Inequality + β₁₀ × Income + β₁₁ × Income² + β₁₂ × Control of corruption + β¹³ × Stability + ε

where Growth is the dependent variable. Private credit and Remittances are the research variables. Manufacturing, Services, Foreign direct investment, Workforce participation, Wages, Inflation, Inequality, Income, Income², Control of corruption and Stability are the control variables. The variables are discussed in Table 1.

Table 1: Variable Descriptions

Variables	Operational definition	Source
Growth	Annual growth of real GDP per capita	WDI
Privatecredit	Domestic credit to private sector (% GDP)	WDI
Remittances	Personal remittances, received (% GDP)	WDI
Manufacturing	Manufacturing, value added (% GDP)	WDI
Services	Services, value added (% GDP)	WDI
Foreigndirectinvestmen t	Foreign direct investment, net inflows (% GDP)	WDI
Workforceparticipation	Labor force/Population aged over 15 years	WDI
Wages	Wages and salaried workers, total (% of total employed	WDI
Inflation	Consumer price inflation	WDI
Inequality	Gini coefficient	WDI
Income	Real GDP per capita in the host country (1000s of constant 2005 international dollar)	WDI
Income2	Squared term of Income	WDI
Controlofcorruption	Index: Control of corruption (-­-2.5 to 2.5)	WGI
Stability	Index: Political stability and Absence of violence/terrorism (-­-2.5 to 2.5)	WGI

Attachment:- Data.rar