Assignment
Take a sample of developing countries and developed countries (at least 40 countries in each
group) and calculate their trade openness for any 10 years. The trade openness index is given
by a country’s (exports plus imports)/GDP at current prices.
A. Find the correlation between trade openness and economic growth for developed
countries and developing countries respectively
B. Test the null hypothesis that mean trade openness of developed countries is greater
than that of developing countries using z test (two sample test) at 5 per cent level of
significance.
C. Test the null hypothesis that the mean trade openness of developed countries is
equal to that of developing countries using z test (two sample test) at 5 per cent
level of significance.
Sampling- simple random sampling or systematic sampling
Data Source: World Bank Databank
Format of the assignment
Introduction
Review of literature- general relationships between trade openness and economic growth as
cited by some studies which you have critically read.
Statement of the assignment objective
Data Source, Sampling type, Methodologies used in the study
Data Analysis (important trends in trade openness, economic growth, correlation and
hypothesis testing)
Inferences from the analysis
Conclusion
Appendix (list of countries, years)