Please write a research report on the impact of a macroeconomic factor on economic
growth in a country of your choice, as per the instructions below. Submission should be
around 2000 words, plus references and appendix (if any).
In this coursework, your objective is to use a time-series data (taken from the World BankWorld Development Indicators), to build and estimate a model and discuss the results of
your findings. For further instructions see below:
Section 1: Abstract (10 marks)
In this section briefly mention your chosen topic, the aim, the examined period/country,
the methods used and your findings.
Section 2: Introduction (10 marks)
In this section, outline the background to your topic (what other studies have found, why
the topic is important). Also, clearly mention the aim of your research report (what you
want to investigate). You can also include in the introduction some mention of your
econometric methods, though these will be explained in section 3.
Section 3: Research Methodology (20 marks)
In this section, present the following:
1. The research question/aim of the report (what you want to investigate)
2. The theoretical model, hypotheses, data and methods (present the variables,
proxies, data sources and methods used).
Also, briefly mention why you have selected these variables and methods. Remember that
you can justify the choice of the particular methodology by citing previous studies.
Section 4: Empirical Analysis (50 marks)
(a) Present desсrіptive statistics of your data using Stata
(b) Perform graphical inspection of the data (using Stata):
-Produce time series plots and critically explain the trend you notice from the
graphs.
-Produce the Autocorrelation Function (ACF) plots of your data. Explain the
pattern of the plots.
(c) Perform unit root tests to assess the stationary properties of the series. Interpret the
results and eliminate trend if exists.
(d) Estimate your model and check its validity by running diagnostic tests. If the model
does not pass the diagnostic tests, try to remedy the problem(s) and re-estimate the
model.
(e) Interpret the final model (interpret the coefficients in the regression model, do
hypothesis testing, check the explanatory power of the model/goodness of fit).
Section 5: Conclusion (10 marks)
Summarize your findings and note the implications for policy/practice.
For your coursework, please download data from the World Bank-World Development
Indicators