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Assignment # 11 and 12

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Mustafa Shah Khan
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Assignment # 11 and 12

Uploaded by

Mustafa Shah Khan
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ASSIGNMENT # 11

1. Why do we use a multiple regression model? Design your multi regression model of any workable
scenario, take its data from any data-source. Run the regression and explain the obtained results.
Check multicollinearity too.

2. Table 9.2 consists of data on savings and income from 1970-1995.

Table 9.2
Savings and Income Data,
USA, 1970-1995

YEAR SAVINGS INCOME DUM


1970 61 727.1 0
1971 68.6 790.2 0
1972 63.6 855.3 0
1973 89.6 965 0
1974 97.6 1054.2 0
1975 104.4 1159.2 0
1976 96.4 1273 0
1977 92.5 1401.4 0
1978 112.6 1580.1 0
1979 130.1 1769.5 0
1980 161.8 1973.3 0
1981 199.1 2200.2 0
1982 205.5 2347.3 1
1983 167 2522.4 1
1984 235.7 2810 1
1985 206.2 3002 1
1986 196.5 3187.6 1
1987 168.4 3363.1 1
1988 189.1 3640.8 1
1989 187.8 3894.5 1
1990 208.7 4166.8 1
1991 246.4 4343.7 1
1992 272.6 4613.7 1
1993 214.4 4790.2 1
1994 189.4 5021.7 1
1995 249.3 5320.8 1

a. Estimate the impact of income on savings. Suppose there is a structural change in 1982. How do
we capture this change through the Dummy variable? Make the model and interpret the results.

b. Capture the same structural change through Chow Break Test and find if any change occurs in the
results

3. If I want to check the impact of foreign remittances inflow and foreign direct investment on
economic growth of Pakistan, how should I design the model? take the annual data of used variables
from 2005 to 2018 from any data-source. Run the regression and explain the obtained results. Check
heteroscedasticity too.

1
4. Analyze the impact of total export on inflation in Pakistan. Take the monthly data of both variables
the potential source of data might be State Bank of Pakistan. Show the econometric model too.
Check multicollinearity too.

5. Analyze the impact of total import on inflation in Pakistan. Take the monthly data of both
variables the potential source of data might be State Bank of Pakistan. Show the econometric model
too. Check heteroscedasticity too.

6. What are the key determinants of import of goods for Pakistan? Shape the determinants into a
econometric model, compile the data as maximum you can. Run the regression and explain the
results. Check heteroscedasticity too

7. If one claims that higher the total labour force in Pakistan wouldn’t increase per capita GDP, how
would you validate the claim or reject it? Analyze the scenario by taking data from year 2000 to
onward and explain the results. Check multicollinearity too.

8. In your opinion, what would be the impact of Manufacturing value added on pollution (CO2
emission) in the case of Pakistan. specifically from 2000 to 2019? Explain all obtained results from
Eviews. Check multicollinearity too.

9. In your opinion what would be the impact of Per Capita GDP on Gross savings in the case of
Pakistan, specifically from year 2000 to 2019? Explain all obtained results from Eviews. Check
heteroscedasticity too.

10. If I want to check the impact of foreign remittances inflow and foreign direct investment on
economic growth of China, how should I design the model? take the annual data of used variables
from 2005 to 2018 from any data-source. Run the regression and explain the obtained results. Check
heteroscedasticity too.

11. In your opinion what would be the impact of Manufacturing value added on pollution (CO2
emission) in the case of Bangladesh. specifically from 2000 to 2019? Explain all obtained results from
Eviews. Check heteroscedasticity too.

12. What are the key determinants of import of goods for Sri Lanka? Shape the determinants into a
econometric model, compile the data as maximum you can. Run the regression and explain the
results. Check heteroscedasticity too.

13. If one claims that higher the total labour force in India wouldn’t increase per capita GDP, how
would you validate the claim or reject it? Analyze the scenario by taking data from year 2000 to
onward and explain the results. Check heteroscedasticity too.

*****

2
ASSIGNMENT # 12

1. For the given model (Y= β1+ β2Z+ β3S+ β4NI+e) perform econometric analysis using EViews.

YEAR GDP ZAKAT NATIONAL NATIONAL SAVINGS


S (dep) (indp) INCOME (indp)
(indp)
2001 7.95E+10 15,432,099 6951894484 9252959223
7
2002 7.99E+10 13,978,836 6968334002 9958761960
0
2003 9.18E+10 22,190,476 8084230043 12060950877
1
2004 1.08E+11 17,749,559 9602062356 15294842510
3
2005 1.2E+11 18,356,261 1.06549E+11 14106726633
2006 1.37E+11 19,142,857 1.21014E+11 13002336313
2007 1.52E+11 19,407,407 1.34363E+11 13741204223
2008 1.7E+11 17,164,021 1.5062E+11 8463471541
2009 1.68E+11 18,850,088 1.50983E+11 14129000002
2010 1.77E+11 16,998,236 1.60879E+11 17091428921
2011 2.14E+11 13,809,524 1.95636E+11 21406187683
2012 2.24E+11 13,890,653 2.05137E+11 19202149388
2013 2.31E+11 14,299,824 2.12623E+11 22068364482
2014 2.44E+11 17,022,928 2.24428E+11 25439228350
2015 2.71E+11 20,278,660 2.50592E+11 29501607497
2016 3.14E+11 26,370,370 2.57837E+11 27876328649
2017 3.39E+11 28,719,577 2.83057E+11 24705844807
2018 3.56E+11 26,038,801 2.9038E+11 22720045493
2019 3.21E+11 32,649,030 2.57194E+11 21105815738
2020 3E+11 27,964,727 2.42991E+11 32193769156

3
After taking log of all i.e. dependent and independent variables, perform econometric analysis.
og(gdp__dep_) c log(zakat__indp_) log( national_savings__indp_) log(national_income__indp_)

Dependent Variable: LOG(GDP__DEP_)


Method: Least Squares
Date: 05/08/23 Time: 14:02
Sample: 2001 2020
Included observations: 20

Variable Coefficient Std. Error t-Statistic Prob.

C -2.064056 0.444097 -4.647756 0.0003


LOG(ZAKAT__INDP_) 0.159731 0.026764 5.968053 0.0000
LOG(NATIONAL_SAVINGS__INDP_) -0.020347 0.029347 -0.693342 0.4980
LOG(NATIONAL_INCOME__INDP_) 0.999851 0.025226 39.63568 0.0000

R-squared 0.997472 Mean dependent var 25.94208


Adjusted R-squared 0.996999 S.D. dependent var 0.485420
S.E. of regression 0.026594 Akaike info criterion -4.239407
Sum squared resid 0.011316 Schwarz criterion -4.040260
Log likelihood 46.39407 Hannan-Quinn criter. -4.200531
F-statistic 2104.753 Durbin-Watson stat 1.754497
Prob(F-statistic) 0.000000

The P-value of all coefficient are significant at 5% level except (national_savings__indp). The co-efficient of zakat
(0.159731) indicates that there is positive relationship between GDP and Zakat holding National income
constant. This means that one unit increase in zakat will increase GDP by 0.19. Similarly, one unit increase in
national income would increase GDP by 0.999. R2 = 0.995 indicates that the developed model is appropriate.

*****

4
Multiple regression result for dummy variables.
savings c income dum

Method: Least Squares


Date: 05/08/23 Time: 14:15
Sample: 1970 1995
Included observations: 26

Variable Coefficient Std. Error t-Statistic Prob.

C 71.70587 13.54567 5.293639 0.0000


INCOME 0.026468 0.007925 3.339604 0.0028
DUM 37.83347 22.90507 1.651751 0.1122

R-squared 0.791900 Mean dependent var 162.0885


Adjusted R-squared 0.773804 S.D. dependent var 63.20446
S.E. of regression 30.06008 Akaike info criterion 9.752440
Sum squared resid 20783.00 Schwarz criterion 9.897605
Log likelihood -123.7817 Hannan-Quinn criter. 9.794243
F-statistic 43.76180 Durbin-Watson stat 1.045517
Prob(F-statistic) 0.000000

The coefficient of income is significant at 5% whereas dummy variable is insignificant indicates that there is no
role of dummy variable in chosen model. One unit increase in income will lead to increase the saving by 0.026.

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