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Question: Table 9.1 suggests a strong positive correlation between the rate of growth of the industrial sector and the rate of growth of total gross domestic product (GDP), but this is shown only for regions and three countries. In this exercise, you will further consider the relationship between these growth rates. Select four less-developed countries other than China, India, or Korea, and record for each the rate of growth of industry and the rate of growth of GDP for at least two periods. You can typically find the data in Table 4.1 in the World Development Indicators available online at https://worldbank.org. If this source is not available, check elsewhere on the World Bank website or another source for the data.
Using this data, draw a graph with the "industry growth rate" on the horizontal axis and the "growth rate of GDP" on the vertical axis. For each country, show its specific industry growth rate and its growth rate of GDP as one point on your graph for each of the time periods for which you have data. Do you see any relationship between the two variables? Draw a straight line through the points you have graphed. Does it have a positive or a negative slope? What does that positive or negative slope tell you? Are the industry growth rate and the GDP growth rate systematically related to one another in your data? (If you have access to Excel or some simple regression program, you can input the data in two columns, one for the growth rate of industry and the other for the growth rate of GDP; use a scatter diagram to show the data. You can have Excel draw a trend line for you.)
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