Corruption and Economy

Assignment Requirements: Statistics Project

 

I will upload two files, the first one is instructions, the 2nd one is excel example that you should follow and make the same. So, please I need 2 text pages plus the excel sheet.

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Research Paper on Corruption and Economies

 

 

A research paper is composed of five parts

 

•        Statement of the issue being analyzed

•        Example: Transparency and Economic Growth

•        For simplicity, transparency is defined here as the “opposite of corruption.”

•        Literature review

•        Why would transparency and growth be correlated?

•        Statement of the hypothesis to be tested (e.g., There is a positive correlation between GDP growth and transparency (a negative correlation between corruption and GDP growth):

•        Testing of the hypothesis (e.g., gather data and run regression)

•        Draw a conclusion – what does your analysis say about the answer to the question?

•        Clearly communicate your findings

COVER PAGE

•        Abstract: One paragraph that explains, in your words, why corruption is related to a dependent variable that you choose (e.g., life expectancy, education, poverty, gender equality, etc.)

 

 

BODY OF THE PAPER

First: Read about corruption at Transparency International and/or other sites to get a sense of what corruption is and why it matters.

Second:State the issue that you will be analyzing and why it is important. You must address how transparency/corruption impacts a nation’s economic development, socio-economic status, or some variable of your choosing. This will be your dependent variable, so select a characteristic of a country that can be measured empirically (e.g., per-capita GDP, GDP growth, percent of the population in poverty, FDI, disease, etc.). The United Nations Human Development Report (HDR) and NationMaster provide empirical measures of a number of social and economic characteristics Transparency International publishes a widely used measure of transparency and you must use this as your independent variable (this is the CPI or (100 – CPI) in this example)

 

Third:Do some research on your topic. (Actually, you may want to do some reading on the subject of corruption or transparency before you decide on a question). Use at least three online references. Write 2 – 3 paragraphs summarizing (in your own words!) what the authors have to say. Based on what you have read and what you know, explain how and why you think your variable is affected by corruption/transparency Do not plagiarize!

 

Fourth: State your hypothesis both in words and in the form of an equation. This must be a statement of how you think corruption is related to the “characteristic” you selected.

 

The CPI ranges from 0 (most corrupt) to 100 (least corrupt or cleanest or most transparent). You can convert your data by Corruption = (100 – CPI). In this way the higher the value the greater the corruption.

 

Example: According to the theory outlined above, it is hypothesized that less corruption (higher CPI) leads to increased growth in a country:

 

•        Growth = α + β(CPI), where β > 0 or

 

Alternative: According to the theory outlined above, it is hypothesized that more corruption (higher (100 – CPI)) leads to decreased growth in a country:

 

•        Growth = α – β(100 – CPI), where β < 0

 

In the above examples (100 – CPI) is a measure of corruption where the higher the value the more corrupt. If you simply use CPI then CPI is a measure of transparency where the higher the value the “cleaner” or “more transparent” the country.

 

Fifith: Gather the CPI scores and the characteristic that you have selected from at least 30 countries. In order to have significant variation in the data, make sure that your sample includes:

•        At least 10 countries that are high income

•        At least 10 countries that are middle income

•        At least 10 countries that are low income

 

Your spreadsheet should look like the first three or four columns in the accompanying Regression Example

 

Sixth: Estimate a regression model using your selected measure as the dependent variable and the CPI or (100 – CPI) as the independent variable.

 

Report your regression results and include the following numbered as indicated:

•        The equation of the estimated regression line

•        The p-value for the slope (not the intercept!)

•        Whether or not there is a statistically significant relationship between the dependent and independent variables, and how did you arrive at this conclusion?

•        Explain what the value of R² is telling you

•        Estimate a value of the dependent variable from an appropriate value of the dependent variable

 

Interpret your statistical results: you must tell the reader what your statistical results imply!

 

Seventh: State your conclusions – what did you find out? Note: Whether or not the data support your hypothesis is not important – just be sure that your conclusion is consistent with your empirical results.

 

Notes:

•        Make sure your variables are “scaled.” For example, if the dependent variable is a “large” absolute value ($30,000, 9,500 widgets, etc.) convert it into a value of a corresponding size by changing $30,000 to 30.0 thousands or by using logs.

•        Make sure to scale data to per-capita or per (1,000), etc. when appropriate

•        For example, China’s total GDP is much higher than Belgium’s but on a per-capita basis Belgium is much richer

•        Attach your data and your regression printouts to the end of the paper

•        Do not report obscure statistical measures that you do not understand

•        The paper must be double spaced and about 2 pages of text, excluding the attached excel. please make an excel same as the excel example that I provided. it would be 2 text pages and 1 page excel

 

Finally, please use anything other than (Economic growth) which was just an example above. you can use (life expectancy, education, poverty, gender equality,)

 

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