Data Analytics – Real GDP Model
Task 1 – Data Cleaning
The data is not provided in a suitable state. It is necessary to get the data into a proper format that supports your analysis. You are required to prepare the data for the analysis - clean the data, reconcile and make it ready for analysis using Excel, SPSS or Tableau.
Task 2 – Data Visualization
You will also create various visualizations using Excel or Tableau.
Task 3 – Predictive Analytics
Develop and estimate a multiple regression model to determine the relationship between real GDP, physical capital and effective labor. The following equation will be estimated.
Y_t=AK_t^∝ 〖LH〗_t^β e^(ε_t ) (1)
〖lnY〗_t=lnA+∝〖lnK〗_t+β〖ln(LH)〗_t+ε_t (2)
Where;
Y is the real GDP
K is physical capital
L is raw labor,
H is the index of human capital,
LH is the effective labor.
ε is the random error.
You will determine the nature of the production process by finding the magnitude of ∝+β.
If ∝+β = 1, then the production process is characterized by constant returns to scale.
If ∝+β > 1, then the production process is characterized by increasing returns to scale
If ∝+β< 1, then the production process is characterized by decreasing returns to scale.
Also, you can determine the return to education by estimating
Y_t=AK_t^∝ L_t^γ e^(ϵ_t )
〖lnY〗_t=lnA+∝〖lnK〗_t+γ〖lnL〗_t+ϵ_t, (3)
And then calculating
β-γ.
It may be a good idea to compare an advanced country and a poor country.
Description of variables
Variable name Variable definition
Emp (L) Number of persons engaged (in millions)
Hc (H) Human capixtal index, based on years of schooling and returns to education
Rgdpna (Real GDP) Real GDP at constant 2011 national prices (in mil. 2011US$)
Rnna (K) Capital stock at constant 2011 national prices (in mil. 2011US$)
Task 4 – Report
Write a paper to present your analysis and results which can be used to recommend growth-enhancing policies.
Each project should be at least 5 pages excluding title page, cover page and references. The project will be organized as follows:
Title page (Include project title and your name)
Introduction: Problem, purpose and justification of the study
Data analytics – various calculations and estimations
Interpretation of results
Findings and conclusion.
Appendices: Tables and Figures.
References
The project will be written using the APA style. (https://apastyle.apa.org/index). Also, this project will be graded using the Data Analytics Rubric for Hands-on Project which is posted on blackboard under “Assignments and Tests.”
Appendix: Selected countries
Number Country
1 Austria
2 Belgium
3 Bulgaria
4 Canada
5 Switzerland
6 Chile
7 China
8 Colombia
9 Germany
10 Denmark
11 France
12 United Kingdom
13 Greece
14 Hungary
15 Indonesia
16 Ireland
17 Iceland
18 Israel
19 Italy
20 Jamaica
21 Japan
22 Kenya
23 Morocco
24 Norway
25 New Zealand
26 Poland
27 Portugal
28 Romania
29 Saudi Arabia
30 Sudan
31 Senegal
32 Singapore
33 Sweden
34 United States
35 Peru