Quantitative methods of economics.

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 + B4X4 Y = GDP % Growth a = constant X1 = Services % Growth X2 = Agricultural % Growth X3 = Industry % Growth …

…could not add any more variables or try any more functional forms, so the JB test was performed to test the normality of residuals but, we rejected this null. Although it was kept in mind that the n<100, so the test was not really for my data set. Reference to: http://www.worldbank.org/data/wdi2003/pdfs/table%204-1.pdf for the data and STATA intercooled 7, for use of the statistiacal software package.