RESEARCH PROJECT 1<\/p>\n
Running head: ECON 483-557 DSA PROJECT FALL2020<\/p>\n
1<\/p>\n
ECON 483-557 DSA PROJECT FALL2020<\/p>\n
Sandra Nwankwo<\/p>\n
Bowie State University<\/p>\n
Professor Thaddee Badibanga<\/p>\n
December 12, 2020<\/p>\n
Introduction<\/p>\n
The real GDP is affected by various factors and failure to address them affect the economy of the country. Real GDP is a factor that will have an impact on economic growth. The value of goods and services determines whether there can be economic growth as defined by the real GDP. The demand side, as well as the supply side, has the factors affecting GDP and to mention a few, real wages, interest rates and the value of the exchange rate affects the real GDP. Developing countries have been able to strategize on how to stabilize their economy, and that has been made possible because developed countries play crucial roles in economic growth. <\/p>\n
The poor and disadvantaged countries face hardships and have been witnessed to have a struggling and unstable economy (Aziz & Azmi, 2017). According to the sentiments of Yolanda (2017), countries need to establish the key aspect the enable a countries GDP to grow. Therefore, in regards to this, this project will focus on real GDP and the factors that affect it. The factor that influences real GDP to be focused on will be physical capital, labor and human capital index. Multiple regression analysis will be executed to help come up with a model that can help predict the real GDP of a country. The obtained information can help in strategizing and planning. <\/p>\n
Data Analytics<\/p>\n
Descriptive statistics<\/p>\n
Table 1: Descriptive Statistics<\/p>\n
Descriptive Statistics<\/p>\n
N<\/p>\n
Minimum<\/p>\n
Maximum<\/p>\n
Mean<\/p>\n
Std. Deviation<\/p>\n
emp<\/p>\n
35<\/p>\n
.1<\/p>\n
540.1<\/p>\n
29.141<\/p>\n
91.7659<\/p>\n
hc<\/p>\n
35<\/p>\n
1.2<\/p>\n
3.3<\/p>\n
2.491<\/p>\n
.6018<\/p>\n
rgdpna<\/p>\n
35<\/p>\n
6305.3<\/p>\n
8510747.5<\/p>\n
813358.709<\/p>\n
1619686.4500<\/p>\n
rnna<\/p>\n
35<\/p>\n
25608.6<\/p>\n
29196228.5<\/p>\n
3134667.517<\/p>\n
5770440.1717<\/p>\n
Valid N (listwise)<\/p>\n
35<\/p>\n
From the above table, data from 35 countries were utilized to get information that can be employed in making well-informed decisions. The mean number of persons engaged was 29.141 million. The mean human capital index was 2.491, with the mean real GDP being $813,358.7 (in millions). The mean capital stock was $3134667.5 (in millions).<\/p>\n
Visualization <\/p>\n
Figure 1: Histogram of the number of persons engaged<\/p>\n
Figure 2: Histogram of Human capital index<\/p>\n
Figure 3: Histogram of Real GDP<\/p>\n
Figure 4: Histogram of Capital stock<\/p>\n
Regression Analysis<\/p>\n
Regression analysis is employed in this analysis to model the data so that the obtained information can be used to create a model that can help in defining the impact of various factors on real GDP. The results of the analysis are as shown below.<\/p>\n
Model Summaryb<\/p>\n
Model<\/p>\n
R<\/p>\n
R Square<\/p>\n
Adjusted R Square<\/p>\n
Std. Error of the Estimate<\/p>\n
1<\/p>\n
.993a<\/p>\n
.986<\/p>\n
.985<\/p>\n
201272.5707<\/p>\n
a. Predictors: (Constant), rnna , hc , emp<\/p>\n
b. Dependent Variable: rgdpna<\/p>\n
ANOVAa<\/p>\n
Model<\/p>\n
Sum of Squares<\/p>\n
df<\/p>\n
Mean Square<\/p>\n
F<\/p>\n
Sig.<\/p>\n
1<\/p>\n
Regression<\/p>\n
87939232597181.140<\/p>\n
3<\/p>\n
29313077532393.715<\/p>\n
723.589<\/p>\n
.000b<\/p>\n
Residual<\/p>\n
1255830079442.294<\/p>\n
31<\/p>\n
40510647723.945<\/p>\n
Total<\/p>\n
89195062676623.440<\/p>\n
34<\/p>\n
a. Dependent Variable: rgdpna<\/p>\n
b. Predictors: (Constant), rnna , hc , emp<\/p>\n
Coefficientsa<\/p>\n
Model<\/p>\n
Unstandardized Coefficients<\/p>\n
Standardized Coefficients<\/p>\n
t<\/p>\n
Sig.<\/p>\n
B<\/p>\n
Std. Error<\/p>\n
Beta<\/p>\n
1<\/p>\n
(Constant)<\/p>\n
-12089.801<\/p>\n
157012.335<\/p>\n
-.077<\/p>\n
.939<\/p>\n
hc<\/p>\n
-19988.297<\/p>\n
62897.088<\/p>\n
-.007<\/p>\n
-.318<\/p>\n
.753<\/p>\n
emp<\/p>\n
155.537<\/p>\n
486.070<\/p>\n
.009<\/p>\n
.320<\/p>\n
.751<\/p>\n
rnna<\/p>\n
.278<\/p>\n
.008<\/p>\n
.990<\/p>\n
35.363<\/p>\n
.000<\/p>\n
a. Dependent Variable: rgdpna<\/p>\n
Coefficient Correlationsa<\/p>\n
Model<\/p>\n
rnna<\/p>\n
hc<\/p>\n
emp<\/p>\n
1<\/p>\n
Correlations<\/p>\n
rnna<\/p>\n
1.000<\/p>\n
-.386<\/p>\n
-.622<\/p>\n
hc<\/p>\n
-.386<\/p>\n
1.000<\/p>\n
.349<\/p>\n
emp<\/p>\n
-.622<\/p>\n
.349<\/p>\n
1.000<\/p>\n
Covariances<\/p>\n
rnna<\/p>\n
6.170E-5<\/p>\n
-190.919<\/p>\n
-2.376<\/p>\n
hc<\/p>\n
-190.919<\/p>\n
3956043734.570<\/p>\n
10660982.057<\/p>\n
emp<\/p>\n
-2.376<\/p>\n
10660982.057<\/p>\n
236264.177<\/p>\n
a. Dependent Variable: rgdpna<\/p>\n
Interpretation<\/p>\n
Based on the obtained results, it is clear that the data is skewed, and its features are for data that comes from a normal distribution. From the regression analysis that has been executed, we can determine if the variables are linearly related. The obtained correlation coefficient is r=0.993. This indicates that there is a positive and very strong relationship that exists between the variables. This means that the real GDP is highly affected by the common stock, human capital and the number of people engaged. Additionally, the coefficient of determination is r-squared=0.986. <\/p>\n
The value indicates that 98.6% of the variation in the real GDP is due to common stock, human capital and the number of people engaged. The p-value for the model is p<0.000, indicating that the model is significant. However, there are non-significant variables with the model despite the strong relationship existing between the model variables. Of the three independent variables, human capital emerges to be the most significant variable that affects the real GDP of a country<\/p>\n
Findings and conclusion<\/p>\n
The results show that the real GDP of any nation is positively affected by the human capital index. It is therefore essential for any government to focus on ensuring that human capital index is addressed. This is because unaddressed human capital may result in poor growth of the economy. The model indicates that the real GDP can be affected by various factors, and therefore it is recommended to establish more variables and determine their impact on the model. This will help in bettering the model and help in making well-informed decisions.<\/p>\n
References<\/p>\n
Aziz, R. N. A. R., & Azmi, A. (2017). Factors affecting gross domestic product (GDP) growth in Malaysia.\u00a0International Journal of Real Estate Studies,\u00a011(4), 61-67.<\/p>\n
Yolanda, Y. (2017). Analysis of factors affecting inflation and its impact on human development index and poverty in Indonesia.<\/p>\n","protected":false},"excerpt":{"rendered":"
RESEARCH PROJECT 1 Running head: ECON 483-557 DSA PROJECT FALL2020 1 ECON 483-557 DSA PROJECT FALL2020 Sandra Nwankwo Bowie State University Professor Thaddee Badibanga December 12, 2020 Introduction The real GDP is affected by various factors and failure to address them affect the economy of the country. Real GDP is a factor that will have […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-78185","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78185","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=78185"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78185\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=78185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=78185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=78185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}