Does trade significantly (at the .05 level) impact growth?

Use the Dataset Growth.wf1 in “resources” — the file growth.pdf defines the variables.

  1. Run the regression growth = α + βTrade + ε

In eviews: ls growth c trade

  1. Does trade significantly (at the .05 level) impact growth?

  2. What does the standard error of the regression mean?

  3. What is your forecast for growth of a nation where trade =.5?

  4. Run the regression:

LS GROWTH C TRADE RGDP60 SCHOOL

  1. What does the F statistic from the regression show?

  2. Test if the coefficients on RGDP60 and SCHOOL are jointly=0.

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