What drives GDP growth in China and Malaysia? How do they compare to each other? Data...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
What drives GDP growth in China and Malaysia? How do they compare to each other? Data on real GDP, capital, employment, are in the country data file, available on the course website. Assume that payments to labor make up two-thirds of GDP in both countries, i.e., 1-a = 2/3. a. How has GDP per worker evolved in the two countries? Turn in one well-labeled graph that plots GDP per worker (1980-2019) for both countries. Use a data software, such as Excel, to make your graph. Do not turn in hand drawn graphs. b. Compute TFP for each year. Create a TFP index for each country by dividing the value of TFP in each year by the value of TFP in 1980 and multiplying by 100. Turn in one well-labeled graph showing (1980-2019) the two TFP indices. c. Compute the marginal product of capital (i.e. the MPK) for each year. Turn in one well-labeled graph showing (1980-2019) the MPKs for each country. d. Separate each country's growth experience into two periods: 1980-1995 and 1995-2019. De- compose the growth in output per worker into contributions from TFP, capital per worker, and these two periods. Report your findings in the tables below. Please report the annual growth rate for each period. China 1980-1995 1995-2019 Y/L aK/L TFP Malaysia Y/L aK/L TFP 1980-1995 1995-2019 e. Prepare a short summary of growth in China and Malaysia, highlighting the similarities and differences between the two countries (including any differences that arise in the two periods). In your report, please address several questions Which of the growth accounting elements are most important? How have returns on capital evolved over this time period? How do the evolution of returns relate to the accounting exercise? What are possible reasons for the evolution of productivity in these two countries. In doing so, you should explore the World Bank's Doing Business reports and Governance Indicators. What drives GDP growth in China and Malaysia? How do they compare to each other? Data on real GDP, capital, employment, are in the country data file, available on the course website. Assume that payments to labor make up two-thirds of GDP in both countries, i.e., 1-a = 2/3. a. How has GDP per worker evolved in the two countries? Turn in one well-labeled graph that plots GDP per worker (1980-2019) for both countries. Use a data software, such as Excel, to make your graph. Do not turn in hand drawn graphs. b. Compute TFP for each year. Create a TFP index for each country by dividing the value of TFP in each year by the value of TFP in 1980 and multiplying by 100. Turn in one well-labeled graph showing (1980-2019) the two TFP indices. c. Compute the marginal product of capital (i.e. the MPK) for each year. Turn in one well-labeled graph showing (1980-2019) the MPKs for each country. d. Separate each country's growth experience into two periods: 1980-1995 and 1995-2019. De- compose the growth in output per worker into contributions from TFP, capital per worker, and these two periods. Report your findings in the tables below. Please report the annual growth rate for each period. China 1980-1995 1995-2019 Y/L aK/L TFP Malaysia Y/L aK/L TFP 1980-1995 1995-2019 e. Prepare a short summary of growth in China and Malaysia, highlighting the similarities and differences between the two countries (including any differences that arise in the two periods). In your report, please address several questions Which of the growth accounting elements are most important? How have returns on capital evolved over this time period? How do the evolution of returns relate to the accounting exercise? What are possible reasons for the evolution of productivity in these two countries. In doing so, you should explore the World Bank's Doing Business reports and Governance Indicators.
Expert Answer:
Posted Date:
Students also viewed these economics questions
-
ENSURE WORK IS ORIGINAL OR I REJECT AND REPORT YOU TON THE SUPPORT INSTANTLYThe end result does now not should be taken care of. You may additionally expect n 6 length(xs). [Hint: Function least is a...
-
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
-
The Litzenberger Company has projected the following quarterly sales amounts for the coming year: a. Accounts receivable at the beginning of the year are $310. Litzenberger has a 45-day collection...
-
Five years ago, Hensley purchased a house. At that time, being unable to pay the full purchase price, she borrowed funds from Thrift Savings and Loan, which in turn took a mortgage at 6.5 interest on...
-
Six tests are performed, and the smallest P-value is 0.03. Which is the best conclusion? i. Reject H0 because P < 0.05. ii. Do not reject H0 because the Bonferroni adjustment yields P = 6(0.03) =...
-
Flaming Foliage Sky Tours is a small sightseeing tour company in New Hampshire. The firm specializes in aerial tours of the New England countryside during September and October, when the fall color...
-
Sharon Industries has the following amounts budgeted for selling and administrative expenses for February: Advertising $85900 Utilities 56800 Office equipment depreciation 14800 Bad debts 7000...
-
GWE in store retail is considering closing stores to save a further 20% next year. Given current figures, how many stores would you expect GWE to close? GWE Profit and Loss for (Year 1) Asia...
-
if a private jet flies the same distance in 1 0 hours that a commercial jet flies in five hours. If the speed of the commercial jet was 1 8 3 mph less than three times the speed of the private jet...
-
If sales forecast is subject to error, then, there is no purpose of budgeting. Do you agree? Also explain how a flexible budget can be used by management to help control costs.
-
What factors should be considered in setting a: (a) Materials price standard; (b) Materials usage standard; (c) Labour rate standard; and (d) Labour time standard?
-
Indicate whether the following statements are true or false. (i) Standard costs are the measures of acceptable cost performance. (ii) Standards should be tight to be an effective tool of cost control...
-
Indicate whether the following statements are true or false. (i) Material price variance is an uncontrollable variance. (ii) The purchase manager is held accountable for unfavourable material usage...
-
What problems are encountered in applying administrative costs partly to the manufacturing and partly to the selling department of a business firm?
-
Write a policy brief about the copyright law in the USA
Study smarter with the SolutionInn App