Economic Growth Assignment Example | Topics and Well Written Essays - 1500 words

Economic Growth - Assignment ExampleThe per capita income of Cuba is greater than that of brazil and that explains the reason behind senior high openness in Cuba as compared with Brazil. This confirms and justifies the correlational statistics coefficient above. This pattern is experienced across most country used in the study.The coefficient 3785.376 is the constant. In interpreting the regression toward the mean coefficient an increase in per capita by one unit will result to increase in openness by 52.10041. This supports the earlier correlation results that showed that openness and per capita income exhibit a positive relation across the countries in 2005. However, the correlation and regression gives general conclusions. The fact is that several open countries have high level of income compared to their closed counterparts. Open economies have fewer difficulties in servicing extraneous liabilities, and inadequate incentive to break a promise on external debt, hence making a turnaround in capital flows less likely. The scatter plot below also indicate a similar scenarioThe regression line is represented by Y=8.886187 + 0.402627X where Y is the level of internal savings and X is the level of domesticated investment. An increase in investment by investment by one unit will increase the level of domestic savings by 0.402627 units.The correlation and regression results show the general family relationship that can be deduced from the analysis of the available data. However, some specific relationship can be also be deduced from the data. Out of 110 countries that had no domestic investment, 63 of them had no domestic savings. For example, Liberia, Libya, St. Lucia, Liechtenstein among others had no domestic levels in 2005, and their resultant domestic savings were also zero. However, some countries like Kuwait had zero domestic investment with 57.04595947 savings rate. This shows that domestic savings are not solely influenced by the level of domestic in vestments in the economy but other factors such as government