問題詳情

4. (15%) Consider the foilowing growth regression model

where Yi =△ log(GDPi) x1oo andX i = △ log(ex port.) x 1oo are GDP growth and export growth,respectively. Regime1= 1 if the country adopts a fixed exchange rate syster, and otherwiseRegime1 = o.


【題組】

(a) What is the impact of 1% increase in export growth on GDP growth for countries with afixed exchange rate regime (ie, fixers)?Now suppose the empirical results are as follows:


where standard errors are in parentheses.

參考答案