Quantitative Methods Of Economics. Essay

3229 words - 13 pages

The Econometric analysis will test the variable "GDP % Growth" as the dependant variable, and how it is affected or explained by the independent variables: "Agricultural % Growth", "Industry % Growth", "Manufacturing % Growth" & "Services % Growth". The data is cross-sectional spread over 77 countries and all the growth rates are for the period 1990-2001.Y = a + B1X1 + B2X2 + B3X3 + B4X4Y = GDP % Growtha = constantX1 = Services % GrowthX2 = Agricultural % GrowthX3 = Industry % GrowthX4 = Manufacturing % GrowthI predict the coefficients to be positive, however the highest impact on GDP % Growth from services and industry growth. This is, as the growth of GDP will encompass the combined effects of the growth of the economy's various sectors, however in most developed countries the services will play the largest part in determining GDP growth, whilst similarly manufacturing and industry will be in the developing countries. These variables will have higher coefficients and t-values if the prediction is correct.The variables "manufacturing growth" and "industry growth" were defined differently in a technical classification sense, however are likely to be very similar and have a degree of collinearity so, it may be that one of these variables will have to be dropped, depending upon how large the covariance is.It will be important to recognise the conditions for accurate ordinary least squares regression, so to obtain accurate estimates with in the regressions. This aims to minimise the sum of squares of the residuals, giving the best fit of the estimated model. These conditions are given as the Gauss-Markov conditions, which state;* Expected value of the disturbance term in any observation should be E(ui) = 0, and therefore should not have a trend in any direction.* Variance of the disturbance term should be constant for all observations, Var(ui) = ui2 ) for all i(no heteroskedasticity)* Covariance between residuals should be 0, therfore there should be no correlation between the two, therefore E(uiuj) = 0, (no auto correlation)* The disturbance term should be independent of the explanatory variable, Cov(xiuI) = 0In addition to these assumptions, there is a normality assumption which states that the disturbance term should be normally distributed, so that the regression coefficients will also be normally distributed, therefore making the t and F hypothesis tests more reliable. To test this we perform the JB test, although we may experience difficulty interpreting the results, as we require a sample of above 100 for this, as the results are only valid asymptotically.The following is a summary of my data from STATA. sum GDP Agriculture Industry Manufac ServicesVariable | Obs Mean Std. Dev. Min Max-------------+-----------------------------------------------------GDP | 77 3.409091 2.462037 -8.5 10Agriculture | 77 2.294805 2.490978 -5.9 9Industry | 77 3.468831 3.886592 -13.2 13.1Manufac | 77 2.914286 4.291108 -12.6 12.8Services | 77 3.646753 2.326596...

Find Another Essay On Quantitative methods of economics.

Quantitative Methods for International Business about The population of Europe and Asia

1012 words - 4 pages 1. IntroductionPopulation is becoming the most serious problem in this world. Overpopulation is the heavy burden in many developing countries. There will be not enough resources to sustain life. Many environmental, social, and economic problems from or are increased in magnitude by the overpopulation problem. For instance, there is a limited area of arable land and living space, such as India. That means no big country with large population has

Quantitative and Qualitative Approaches to Educational Research: Strenghs and Weaknesses

3370 words - 13 pages associated with post-positivist, hermeneutic or constructive schools of thought (Evers and Walker, 1998: 28). Each of these approaches provides researchers with different paradigms or conceptions and views of research problems and methods. As a result, the conclusions generated from each of these methodologies are different.The purpose of this paper is to provide an analysis of both the quantitative and qualitative research traditions and to

Quantitative Research

1270 words - 5 pages the primary criterion for judging methodological quality. This will allow for situational responsiveness that strict adherence to one paradigm or another will not" (Patton, 1990, p. 30). The ideals of quantitative research call for procedures that are public, that use precise definitions, that use objectivity-seeking methods for data collection and analysis, that are replicable so that findings can be confirmed or disconfirmed, and that are

Mixed Methodology in the Field of Educational Research

2190 words - 9 pages QUESTION 1 "With the development and perceived legitimacy of both qualitative and quantitative research in social and human sciences, mixed methods research, employing the combination of quantitative and qualitative approaches, has gained popularity." (Creswell, p. 203). Describe the development of mixed methodology in educational research. Discuss the steps that need to be taken to develop a viable mixed methods research study. Evaluate

Approach to Research Studies

950 words - 4 pages Approach to Research Studies The field of social science typically applies the research methods of either qualitative or quantitative concept ( ). The quantitative research strategy incorporates approaches which emphasize on quantities. The quantitative method collects data, usually by numbers, and is evaluated by numerical and automated methods. The quantitative approach to research is primarily used in research in the field of physical

MBA Application Essay #4

734 words - 3 pages liking something does not relieve you from what needs to be done. That is how I ended up in both a statistics and quantitative research class in college. After declaring my first major, Sociology, the degree requirements changed. To the envy of my peers, I only had to take one of two new research methods classes. They were dumbfounded when I decided to add quantitative research, accompanied by a statistics pre-requisite, as a degree elective on

Quantitative versus Qualitative Measures

1795 words - 8 pages Northcentral University provides doctoral students with various resources to aid them in their academic pursuit (NCU, 2013). The Concept Paper Template is required reading for students. One purpose of the Concept Paper Template (CPT) is to familiarize the student with quantitative and qualitative design methods. The objective of this discussion is to compare and contrast each approach as outlined in the CPT (NCU, 2013). One of the decisions a

Marketing Research: Primary vs. Secondary Research

1115 words - 4 pages meaning to what is being examined. Overall, both quantitative and qualitative research can be combined to enhance primary and secondary research. Qualitative & Quantitative Tools “The term “research tool” can simply be another name for a research method, or it can apply to specific techniques and materials that researchers use in the study.” (Healey, 2012). As for qualitative research there are three main methods of data collections

The Nature of Quantitative Research

1332 words - 5 pages types of research are more likely to be conducted using its methods rather than the methods involved in qualitative research. The following list contains the main types of approaches to quantitative research: 1. Descriptive or Survey Research- This type of research attempts to answer questions about the current status of the subject or topic of study. Usually, this type of research involves studying the preferences, attitudes, practices

Signature Paper

2225 words - 9 pages ), up to the mid-1990, a significant amount of mainstream IS scholars, particularly those in North American and Asia, research was assumed to be quantitative, and studies not using the accepted quantitative methods were excluded from the definition of research itself. Qualitative research uses purposeful sampling instead of drawing a random sample and addressing the assumptions of statistical analysis techniques. Hanson, Balmer, and Giardino

How Children with Autistic Spectrum Disorder (ASD) React to Music

1838 words - 7 pages Qualitative and quantitative methods allow researchers to investigate, explore and inquire the nature of the phenomenon being studied. It is important that the researcher develops a clear understanding of the problem and design a plan to investigate it (Cresswell, 1998, para. 1). There are a variety of research methods; nevertheless, it is important to consider which research method is appropriate for the study. Qualitative research focuses

Similar Essays

Characteristics Of Qualitative And Quantitative Methods

937 words - 4 pages Qualitative and quantitative researcher’s exhibited conflicting ways of approaching a research. Some researchers prefer qualitative over quantitative and vice-versa. Also, it is common for qualitative and quantitative to be used together in a research. But, both methods when carried out correctly provide good research. Plus, both methods have their own unique differences and characteristics. In this paper I will define three of these

An Assessment Of The Advantages And Disadvantages Of Quantitative Research Methods.

696 words - 3 pages Quantitative data is data in a numerical form- in the form of numbers. Qualitative data spans a range of material from the descriptions of social life provided by participant observation and unstructured interviews to information from written sources.Quantitative data is usually in the form of statistics. Questionnaires and structured interviews are typical methods used when gaining quantitative data, as the results are easily transferable to a

Evaluating The Effectiveness Of Qualitative, Quantitative And Mixed Methods When Applied To Mental Health Counseling

5317 words - 21 pages ., professional counselor, licensed counselor, and mental health counselor), adding to consumer confusion.In the quantitative and qualitative research methods effectiveness, methods of constructivist assessment (G. J. Neimeyer, 2003) and tools for reliably assessing shifts in consciousness (Pekala, 2001) may prove invaluable in charting the emergence and submergence of state shifts across contexts and through the counseling process. Such work will inevitably

A Professional Literature Review Of Incorporating Music Into The Economics Classroom: A Comparison Of Two Teaching Methods” By: Jane Aw Yang Huey, Mara University Malaysia

524 words - 2 pages "Incorporating Music Into The Economics Classroom: A Comparison of Two Teaching Methods"Teaching can be done in many different ways, but this article particularly sought out the practice of learning by music. In a Principles of Economics class, some office management students were taught by the use of music lyrics. A study was done, one class taught with the inclusion of music lyrics and the other taught by the typical "chalk and board" practice