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Data Analysis on Macroeconomics (Countries)

josh
April 21, 2014 0 Comment

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Consider the Figure 6.6 in the textbook and the following hypothesis: ?Similar economies will experience convergence in their levels of per capita income.? Using your knowledge of weeks 1 to 5 as a background, conduct the following data analysis.
Select twenty high-income countries and twenty developing (poor) countries in the 1960s. In your sample of developing countries, please make sure that you include countries from West Asia, South and South-East Asia, Africa and Latin America.
Plot 3 graphs, a graph for each sample and one combined with annual average growth rate from 1960-2010 on the vertical axis and the real per capita GDP (corrected for ppp) in 1960 on the horizontal axis.
You can use data from the following sources (or alternatively clearly document your data sources): World Bank Indicators, IMF, CIA, Penn World Tables.
You will be assessed based on:
Background information.
Data identification and sourcing. You need to provide an appendix with the selected data. This appendix should allow for replication of your analysis, as such it must contain clear labels and information.
Clear presentation of plots labelled with units and axis
Data analysis.
Discussion of findings.
You need to select 2 groups. One group of twenty developing countries and another group of twenty high-income countries in the 1960s.
Then you need to plot:
1) The group of twenty developing countries together (20 points), using for each country annual average GDP growth rate from 1960 to 2010 on the vertical axis, and the real per capita GDP (corrected for purchasing power parity) in 1960 on the horizontal axis.
2) The group of twenty high-income countries together (20 points), using for each country annual average GDP growth rate from 1960 to 2010 on the vertical axis, and the real per capita GDP (corrected for purchasing power parity) in 1960 on the horizontal axis.
3) The two groups together (40 points), using for each country annual average GDP growth rate from 1960 to 2010 on the vertical axis, and the real per capita GDP (corrected for purchasing power parity) in 1960 on the horizontal axis.
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