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

Attachment:- Data.rar