ASSESSMENT BRIEF
Subject Code and Title STAT2000: Quantitative Analysis
Assessment Group Assignment
Individual/Group Group
Submission By week ending 11:55pm AEST/ADST Sunday
Weighting 20%
Context:
Research topic: Economic growth, private credit and remittances
Objective: To examine the relation of economic growth with private credit and remittances
Context: International
Data period: 1996-­-2012
Data source: World Development Indicators and World Governance Indicators
Instructions:
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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 =ß!+ß!×Privatecredit +ß!×Remittances +ß!×Manufacturing
+ß!×Services +ß! ×Foreigndirectinvestment
+ß! ×Workforceparticipation +ß! ×Wages+ß! ×Inflation +ß! ×Inequality +ß!-×Income+ß!!× Income!
+ß!-×Controlofcorruption +ß!-×Stability
+e (1)
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
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Learning Rubrics
Assessment
Attributes
0-34 (Fail 2– F2) 35-49
(Fail 1 – F1)
50-64
(Pass -P)
65-74
(Credit - CR)
75-84
(Distinction – DN)
85-100
(High Distinction – HD)
Unacceptable Poor
Functional
Proficient Advanced Exceptional
Grade Description (Grading Scheme) The assignment does not even include descriptive statistics, correlation matrix and regression output. The assignment includes descriptive statistics, correlation matrix and regression output but lacks the background and objectives, hypotheses data and methodology, findings and analysis, and conclusions. The assignment includes background and objectives, data
and methodology
descriptive statistics, correlation matrix and regression output but lacks the hypotheses, findings and analysis, and conclusions. The assignment includes background and objectives, hypotheses, data and methodology,
descriptive statistics, correlation matrix and regression output but lacks the findings and analysis, and conclusions. The assignment includes background and objectives, hypotheses, data and methodology,
descriptive statistics, correlation matrix, regression output, and findings and analysis but lacks the conclusions. All the requirements of the assignment are properly addressed. These should include: 1. Background and objectives of the research 2. Hypotheses 3. Data and methodology including descriptive statistics and correlation matrix 4. Results (regression output)
5. Findings and analysis
6. Conclusions
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