Reference no: EM131061788 , Length: word count:2500

We have studied in detail models relating to capital accumulation, TFP and convergence. The aim is to use these frameworks to make sense of the various data you are given and to fashion a coherent answer to the questions set. Good answers will correctly use the models covered in class to provide a framework for your answers. They will also arrange the data in a coherent way that utilises the theoretical ideas and combine them with your own judgements as to what matters for growth.

The very best answers will also provide some critical evaluation of these models and the data provided and in addition show independent thought and possibly use additional data. However, you are not encouraged to reproduce various Economist Intelligence Unit reports. The best answers will use analytical frameworks and process data provided to provide a general ranking of countries and avoid journalism and overly lengthy surveys of each nation. Be explicit about the assumptions you make and how they lead to your ranking.

Emerging Markets

This assignment is based around the spreadsheet (WEF Global Competitiveness) in which you will find a list of indicators for a number of emerging market economies (all data taken from the World Economic Forum's Global Competitiveness Report.1 ). You can of course supplement this with additional data (for instance you may, or may not, find https://info.worldbank.org/governance/wgi on governance useful).

Using these data and your knowledge of the determinants of long run prosperity rank the countries in terms of their growth prospects.

	A	B	C	D	E	F	G	H	I	J
Bangladesh	1172	3.5	3	2.8	30	91.5	3.7	13.5	3.7	2.1
Burundi	336	2.8	3.1	2.8	2.4	94.8	2.6	9.5	3.3	2.7
Ecuador	6286	3.8	2.2	4.6	27.2	97	4.3	9.7	3.7	3.2
Ethiopia	575	3.3	3.4	3.2	25.2	85.4	3.7	12.7	4	3.1
Jordan	5358	4.6	4	4.4	14.3	97.1	4.4	7.5	4.7	4.1
Madagascar	449	3	3.2	2.6	12.9	77.1	3.8	7.5	3.8	2.5
Mongolia	4096	3.2	3.2	3.3	24.3	94.7	3	4	4.3	3.4
Uganda	726	3.3	3.7	3.5	24.3	91.5	3.9	9.5	4.5	2.9

A = GDP per capita, 2014 (Current Prices $, US = $54597)

B=Intellectual Property Rights (1=weak and not enforced, 7 =strong and enforced) C=Burden of Government Regulation (1=extremely bothersome, 7=not bothersome at all)

D=Quality of Infrastructure (1=underdeveloped, 7=as extensive and efficient as the world's best) E=National Savings Rate (% GDP)

F = Primary School Enrollment Rate

G = Quality of Management Schools (1 = limited and of poor qu H=Trade weighted tariff rate

I= FDI and Technology Transfer (1 = brings in little new technology, 7=an important source of new technology) J = Nature of competitive advantage (1=low cost or local natural resources, 7 = unique products and processes) Source: The World Economic Forum, Davos