Which of these factors sound like the factors of production

Assignment Help Business Management
Reference no: EM131832704

One way to learn about what makes some countries richer is to run statistical tests to see which factors are good at predicting a nation's level of productivity.

Sometimes it turns out that a relationship is just a coincidence (like the fact that people in rich countries eat more ice cream), but other statistical tests really can tell you about the ultimate causes of productivity. A statistical test can't tell you everything, but it might help point you in the right direction.

In courses on econometrics and statistics, you can learn about how to run sensible tests. Let's look at one well-known set of tests, to see if what you learned in this chapter matches the statistical evidence.

Here are 17 variables that turned out to be very strong predictors of a nation's long-run economic performance in literally millions of statistical tests (Source: Salai-Martin, X., G. Doppelhofer, and R. Miller. 2004.

Determinants of long-term economic growth: A Bayesian averaging of classical estimates (BACE). The American Economic Review, 94(4) (September): 813-835.) They are in rank order, and a "+" means more of that value was good for long-run productivity:

1. Whether a country is in East Asia (+)

2. Level of K-6 schooling (+)

3. Price of capital goods (-)

4. Fraction of land close to the coast (+)

5. Fraction of population close to the coast (-)

6. Malaria prevalence (-)

7. Life expectancy (+)

8. Fraction of population Confucian (+)

9. Whether a country is in Africa (-)

10. Whether a country is in Latin America (-)

11. Fraction of GDP in mining industries (+)

12. Whether a country was a Spanish colony (-)

13. Years open to relatively free trade (+)

14. Fraction of population Muslim (+)

15. Fraction of population Buddhist (+)

16. Number of languages widely spoken (-)

17. Fraction of GDP spent on government purchases (-)

a. Which of these factors sound like the "three factors of production"? Which ones do they sound like?

b. Which of these factors sound like the "five key institutions"? Which ones do they sound like?

c. Which of these factors sound like geography?

d. The Western United States was a Spanish colony until 1849. On average, former Spanish colonies have had poor economic performance. Does the Western United States fit that pattern? Why or why not?

Reference no: EM131832704

Questions Cloud

Why have three advertising budgets : Communists believed that their system would be much more efficient than capitalism: They thought that competition between companies was wasteful.
Sample from a normal distribution : Suppose that Xl. " " XIO form a random sample from a normal distribution for which both the mean and the variance are unknown
What do you think creates the good institutions that exist : Why do you think expensive red tape is difficult to get rid of in many poor countries? Yes, this is a miniature version of the previous question.
Determining the differential brightness : Suppose that the differential brightness B of a certain star has an unknown value, and that it is desired to test the following simple hypotheses:
Which of these factors sound like the factors of production : Which of these factors sound like the "three factors of production"? Which ones do they sound like?Which of these factors sound like geography?
Computing the product of all elements in an array : Computing the product of all elements in an array. Counting how many elements in an array are negative.
List the sample space : List the sample space. Using the sample space list, determine the probability that the customer will select a sample with exactly one defect.
Declare an array list primes of integers : Declare an array list primes of integers that contains the first five prime numbers (2, 3, 5, 7, and 11).
Example of a random phenomenon : Give an example of a random phenomenon that would be studied by (i) a physicist, (ii) a geneticist, (iii) a traffic engineer, (iv) a quality-control engineer

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd