Take the number 37, divide this number by 5, and round it up to the nearest integer. Find in the table below which country is associated with this integer. This is the country for which you must complete the following project.
1 Argentina 2 Australia 3 Brazil 4 China 5 Egypt 6 Finland 7 France 8 Germany 9 India 10 Indonesia 11 Italy 12 Japan 13 Mexico 14 Nigeria 15 Pakistan 16 South Africa 17 Spain 18 Sweden 19 United Kingdom 20 United States
1. Formulate a hypothesis regarding the relationship between four or more economic variables (dependent variable included). When you formulate your hypothesis, think about what you have learned from your economic theory classes like Principle of Microeconomics and Principle of Macroeconomics
2. Download data from World Bank Open Data website (https://data.worldbank.org) for the country you are associated to. Limit the time period to 1980-2015. Some variables to consider are GDP per capita in current US dollars, GDP growth rate, export of goods and services in US dollars, education expenditure as a percentage of government expenditure, etc. There are data for a lot of variables on the website. Think about the hypothesis you want to test before downloading the data.
3. Import the downloaded data into R. R can import EXCEL types of data. Try to start with read.table( ) command.
4. Submit a 7 page long paper (this page count does not include the pages with the R output). The paper should include the following sections:
(i) Description: a description of the issue you are analyzing.
(ii) Summary: report the descriptive statistics of each variable.
(iii) Hypothesis: state the hypothesis that is being tested.
(iv) Regression Results: report your estimation results.
(v) Plot the residuals. Are the residuals consistent with the assumption of classical regression?
(vi) Hypothesis Testing: report the results from your hypothesis test. Include at least one hypothesis where you are testing if two or more variables, but not all slope coefficients, are equal to some value. (e.g., zero.)
(vii) Policy Implications: discuss the implications of your results. What are the policy implications of your research?
(viii) R Outputs: include your R code and outputs at the end of the paper. This part does not count in the 7 pages requirement of the paper.