Description

The World Bank is a treasure trove of information. :- https://data.worldbank.org/ Generally the Gross Domestic Product of a country = the total output of the country = measure of development/total affluence of the country is measured by indicators such as household spending, government spending, level of investments etc. Please see Bank of England explanation of GDP here :- http://edu.bankofengland.co.uk/knowledgebank/what-is-gdp/ I have argued that GDP could instead be measured better by primary indicators that lead to these what I call "secondary indicators". Primary indicators are such as :- level of education. I hypothesize that a higher level of education leads to higher household income and hence higher household spending. So does knowing education levels of a country allow us to predict the GDP of the country? I have used the list of primary indicators below to do a regression of the GDP per person :- (1) Women making informed choices regarding healthcare - The null hypotheses (H0)----> is the higher the level of women's education - the higher the level of national education and lesser infant mortality rates(which might be a stretch) and hence higher household income --> higher household spending ---> higher GDP. (2) Rural Population % - The null hypotheses (H0) is -----> higher rural population ----> lower per capita household income----> lower level of household spending----> lower GDP. (3) Ratio of Population having education ----> similar to above. You get the point hopefully by now... if not read a introductory macroeconomics textbook or course like this :- https://www.edx.org/course/introduction-economics-macroeconomics-snux-snu044-088-2x-0 (4) Legal Rights Strength Index-----> This actually comes from Islam. In Islam - the affluence of a country is related to truthfulness, rule of law being abided in the country etc.. For those who can understand Urdu/Hindi - please watch this video :- https://www.youtube.com/watch?v=XLjicUv0KYs (5) Credit to Private Sector -----> easier it is to open a business, work on ideas-----> higher should be the output of the country (6) Births attended by Skilled Staff ------> less infant mortality ----> indicates higher level of education and health care in the country ------> can indicate higher government spending among other factors ------>and should translate to higher level of GDP. (6) ATMMachines Ratio per 1000 people ---------> Higher level -----> shows finance is easily available -----> institutions are developed -----> maybe even indicates better public infrastructure-----> should indicate higher personal and government funding. (7) Agricultural Machines per hectare of land ------> higher automation -----> better access to finance for rural areas ------> should lead to higher GDP. (8) Literacy Rate Adults -----> the higher level of education in adults ----> higher private spending -----> should lead to higher GDP. (9) Accounts Ratio Financial Institutions -----> how many people have bank accounts who are male and over 15 ------> shows level of private spending-----> level of finance and infrastructure and hence government funding maybe -----> higher GDP.