Posted: September 13th, 2017

The relationship between FDI and exports;

The relationship between FDI and exports;

Your assignment data file contains data on FDI stocks (millions US$), exports (millions US$) and population (thousands) for 70 countries, 30 High to Middle income countries (H) and 40 less developed countries (L). Each file contains data for China, the US and the UK but other countries vary across files. This means that the outputs will be different for each student, enabling detection for plagiarism.
Using the data from your file, answer the following:
A. Calculate the correlations between FDI stocks, export and population for the years 1980, 1995, 2007 and 2010 for the whole sample, and the H and L samples. Present the results in a word table and comment on comparisons of the correlations through time and across countries.
B. Perform the following regressions on the natural logs of each variable
(i) Exports on FDI for each of the years, 1980, 1995, 2007 and 2010
(ii) Exports on FDI and population for each of the years, 1980, 1995, 2007 and 2010
Comment on the coefficient values, significance of the coefficients and the R2.
Note Exports is the dependent variable, and FDI and population are the independent (explanatory) variables.
C. Now divide the sample into H and L countries and repeat the regression in Part B (ii) for each sample separately. Compare the results across the two groups of countries. How has this comparison changed over time?
D. For the total sample of all countries run the same regression as in Part B (ii) but this time including an additional dummy variable, Dcountry, where Dcountry = 1 for H countries and Dcountry = 0 for L countries. Comment on how this changes the coefficient values, significance of the coefficients and the R2.
The assignment should contain no more than 1000 words excluding Tables and Charts.
Deadline: Friday April 24 2015, 10am
The assignment should be independent work. Plagiarism in this assignment would be that students copy from each other – if detected this could result in a zero mark or more serious consequences.
Assessment Criteria
Presentation – The tables must be presented and discussed in a WORD document. The tables must not be direct copies of tables from SPSS output files but instead the relevant results need to be put in WORD tables.
Understanding of Statistical Methods. The assignment should demonstrate that the student understands how to apply statistical methods to their dataset and the validity of their conclusions on the relationship between FDI and exports.
7SSMN100 Quantitative Methods. Assignment 2 Table templates