In the following estimated equation, GDP refers to gross domestic product, FDI refers to foreign direct investment, BKCR
Posted: Sun Jul 03, 2022 6:51 am
In the following estimated equation, GDP refers to grossdomestic product, FDI refers to foreign direct investment, BKCR isBank Credit and figures in parentheses are standard errors.log(GDP) = 4.62 + 2.51log(BKCR) + 1.26FDI (0.13) (0.32) (0.47)
(a) Determine the significance of the estimated parameters.
(b) If Bank Credit increases by 1%, what happens to GDP if FDIremains constant?
(c) If FDI increases by 1%, what happens to GDP if Bank Creditremains constant?
(d) Using economic theory, evaluate the reliability of theexpressed relationship among Bank Credit, FDI and GDP as indicatedby the estimated equation.
(a) Determine the significance of the estimated parameters.
(b) If Bank Credit increases by 1%, what happens to GDP if FDIremains constant?
(c) If FDI increases by 1%, what happens to GDP if Bank Creditremains constant?
(d) Using economic theory, evaluate the reliability of theexpressed relationship among Bank Credit, FDI and GDP as indicatedby the estimated equation.