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Complete 3 page APA formatted essay: The impact of consumption and Investment on the GDP in Qatar (1990- 2012).The reason for selecting this period of data was the incomplete data for all three variab
Complete 3 page APA formatted essay: The impact of consumption and Investment on the GDP in Qatar (1990- 2012).
The reason for selecting this period of data was the incomplete data for all three variables that could have extended the analysis for the longer period. Moreover, it is important to provide definition of three variables included in the analysis.
Net FDI = “The net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor.” (“Indicator Queries”).
The table indicated the country’s GDP increased significantly from 1994 to 2011 as the lowest value was recorded in 1994 and the maximum value was achieved in 2011. A sharp decline in the country’s GDP was recorded in 2009. Similar trends were observed in other two variables. The country’s exports increased significantly in the year 2011. The third variable ‘net inflows’ also showed a steady growth in the selected period. However, in 2011 a major decline was recorded.
The results indicated that the value of adjusted R2 was 0.9871, which implies that the regression model implemented explained 98.71% of the total variations observed in 18 data entries. The regression equation obtained from the analysis indicated that the coefficient of constant, β0 was 664545798.4126. A high value of constant coefficient suggested that there are other factors that affect the country’s GDP. Referring back to the equation of GDP provided, it could be noted that there are other variables included in the calculation of GDP.
The coefficient of slopes obtained from the regression analysis were β1 = 1.4160 (exports) and β2 = 3.7452 (FDI net inflow). These values indicated that there is a positive relationship between GDP and exports and GDP and FDI net inflows. The findings reassert that to calculate a country’s GDP the values of investment and exports are added. The results imply that for every $1 increase or decrease in exports the country’s GDP would increase or decrease by $1.4160 respectively.
