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Econometric Project for final year undergraduate student - Essay Example

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A study was carried out to determine whether an increase in real consumption expenditures, real domestic investment, government expenditures, personal disposable income, taxes and net exports has significant effect on the GDP growth. Secondary data was used for the study and is…
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Econometric Project for final year undergraduate student

exports – imports as the within subject factors. Further, simple regression models of the nature; GDP = β0 + β1Xi (where Xis where the within subject factors). From the analyzed results, the variables real consumption expenditures, real gross private domestic investment, real government expenditures, real net taxes, and real net exports i.e. exports – imports were found to be statistically significant at 5% level of significance while the variable real personal disposable income was found not to be significant.
The success of this paper was immensely contributed to by many people. In particular, I would like to thank my lecturer Mr.…………., for his/her guidance and un-questionable advice without which it would have been difficulty to realize the objective of the paper………………………………………………………. Finally, I would like to thank my family for their understanding and support in the entire period.
According to Amadeo, K. (2009), GDP stands for the total amount of goods and services a country produces while growth rate is the rate with which the GDP changes over years. A countries GDP growth is determined by the many factors which include political factors, environmental factors, level of investments and level of consumptions among many other factors. To Amadeo, a country’s GDP growth rate is often driven by the level of retail expenditures, level of government spending, what the country exports and imports. To him, more imports mean a negative GDP growth.
Wynne, M. A. (1992) supports the assertion made by Amadeo arguing that the most crucial indicator of economic growth is the GDP growth. According to him, GDP growth signifies business well-being, more jobs for the un-employed and more gains in personal income growth. On the other hand, negative GDP growth affects consumer and business confidence resulting to businesses holding both ... Read More
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