VIETNAM NATIONAL UNIVERSITY – HO CHI MINH CITY

INTERNATIONAL UNIVERSITY

SCHOOL OF BUSINESS

‫ﻣﻣﻣﻣﻣﻣﻣﻣﻣﻣﻣﻣﻣﻣﻣﻣﻣﻣﻣﻣ‬

ECONOMETRICS WITH FINACIAL APPLICATION REPORT

IMPACT OF FOREIGN CAPITAL INFLOWS ON GDP GROWTH

MEMBERS
TRẦN UYÊN PHƯƠNG-BAFNIU16121
LÂM TRẦN BẢO THY-BAFNIU16020
PHẠM QUANG MINH-BAFNIU16122

Lecturer: Nguyen Phuong Anh

1
Table of Contents
ACKNOWLEDGEMENT ................................................................................................. 3
I. INTRODUCTION .................................................................................................... 4
1. Literature Review ............................................................................................................ 4
2. Objectives........................................................................................................................ 4
3. Methodology ................................................................................................................... 4
4. Data ................................................................................................................................ 4
II. TESTING FOR MULTIPLE REGRESSION......................................................... 5
1. Regression model ............................................................................................................ 5
2. Testing for estimating Standard errors ........................................................................... 6
a) Testing for Multicollinearity ............................................................................................................... 6
b) Testing for Ramsay Regression Equation Specification Error Test..................................................... 6
c) Testing for Heteroskedasticity test ...................................................................................................... 7
d) Dealing with heteroskedasticity test by using weighted least squares(OPENESS) ............................. 7
III. THE NON-NORMALITY RELATIONSHIP BETWEEN KIEUHOI AND GDP
GROWTH ........................................................................................................................ 8
1. Regression model ............................................................................................................ 8
2. Testing for estimating Standard errors ........................................................................... 9
a) Testing for Ramsay Regression Equation Specification Error test ...................................................... 9
b) Testing for Multicollinearity ............................................................................................................. 10
c) Testing for Heteroskedasticity Test ................................................................................................... 10
d) Dealing with Heteroskedasticity test by using Weighted Least Squares(OPENESS) ....................... 11

IV. IN CONCLUSION .............................................................................................. 12

V. REFRENCES ......................................................................................................... 13
VI. APPENDIX ........................................................................................................ 14

2
 ACKNOWLEDGEMENT

The team would like to express our deepest thanks to lecturer of Econometrics with Finance
Application Mrs. Phuong Anh for guidance and encouragement us to do this wonderful project
on the topic Impact of foreign capital inflows on GDP growth.

The group also thankful to members for the cooperation, efforts and sincere suggestions to
complete this project.

Given the limited time and experience of the group, the project cannot avoid shortcomings. My
team looking forward to receiving the advice and comments from lecturer in order to my group
can supplement and broaden knowledge.

Sincerely

3
 I. INTRODUCTION
1. Literature Review
Developing countries always lack of capital to promote economic growth. During the past
decades, many national depend on foreign capital inflows miraculously developed as Korea,
Japan, Singapore. My team choose topic to re-examine the influence of foreign capital on
growth rate in developing countries. Besides, my group test the impact of other factors such as
trade openness on the movement of foreign capital in developing countries. Research helps to
broaden knowledge about econometrics with financial application and apply it to analysis
economic phenomena.

2. Objectives
- Testing the impact of FDI on the growth rate of GDP.
- Check the impact of KIEUHOI on the growth rate of GDP.
- Check the impact of trade openness on GDP growth rate
- Check the impact of inflation on the growth rate of GDP

3. Methodology
- Using data from World Bank sources on criteria representing growth, foreign capital
and setting targets only shows the proportion of foreign capital in GDP.
- The use of a multivariate linear regression model on Eviews to analyze the relationship
between factors.

4. Data
- GDP growth: This is a measure of salary growth of GDP (gross domestic product) of
105 developed countries in 2016 and 2017. Data are collected from secondary data
sources from the World Bank

- Inflation: This is a measure of the inflation rate of 105 developing countries in 2016.
Data are collected from secondary data from the World Bank.

- Openness (Trade / GDP): A measure of the proportion of trade turnover in the GDP
structure. It is measured by taking the value of Trade divided by GDP. All data are
collected in 2016 and 2017 from World Bank sources . This is a variable that represents
trade openness.

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II. TESTING FOR MULTIPLE REGRESSION
1. Regression model
Dependent
Variable:GROWTH_GDP
Method: Least quares
Sample: 1 105
Included observations: 105
Variable Coefficient Std. Error t-Statistic Prob.
C 3.661088 0.256118 14.29452 0.0000
FDI -5.70E-13 3.22E-12 -0.176964 0.8599
INFLATION -0.087959 0.032228 -2.729306 0.0075
LKIEUHOI 0.334119 0.106327 3.142383 0.0022
OPENNESS -0.009827 0.003269 -3.006317 0.0033
R-squared 0.190593 Mean dependent var 3.030179
Adjusted R-squared 0.158216 S.D. dependent var 2.047533
S.E. of regression 1.878586 Akaike info criterion 4.145364
Sum squared resid 352.9086 Schwarz criterion 4.271743
Log likelihood -212.6316 Hannan-Quinn criter. 4.196575
F-statistic 5.886801 Durbin-Watson stat 2.094208
Prob(F-statistic) 0.000270

Regression equation as follows

̂
𝐆𝐃𝐏𝐆𝐑𝐎𝐖𝐓𝐇=3,661088 – 5,7.10-13FDI – 0,087959INFLATION + 0,334119LKIEUHOI - 0,009827OPENNESS
(0,2561) (3,22.10-12) (0,03222) (0,1063) (0,0033)

- When foreign direct investment increased by $ 1 billion, the GDP growth rate
decreased by 5.7.10-13% under the condition that other factors remained unchanged.
- When inflation increases by 1%, GDP growth rate decreases by 0.0880% under the
condition that other factors remain unchanged.
- When remittances increase by US $ 1 billion, GDP growth rate increases to 0.3341%
under the condition that other factors remain unchanged.
- The trade openness increased by 1%, the GDP growth rate decreased by 0.0098%
under the condition that other factors remained unchanged.
- When considering the partial impact of each independent variable on the GDP growth
variable, we can conclude:
- The variable INFLATION, LKIEUHOI, OPENNESS has a causal effect on GDP
growth at the 5% significance level.
- The FDI variable has no effect on GDP growth at the 5% significance level and can
be removed from the regression model.

5
 - As Probability (F-statistic) is less than at the 5% significant level. Hence, all 4
independent variables have the same effect on GDP growth rate at the 5%
significance level.

2. Testing for estimating Standard errors

a) Testing for Multicollinearity

Variance
Inflation factors
Sample: 1 105
Included observations: 105
Coefficient Uncentered Centered
Variable Variance VIF VIF
C 0.065597 1.951678 NA
FDI 1.04E-23 1.247879 1.117204
INFLATION 0.001039 1.328246 1.012781
LKIEUHOI 0.011305 1.140795 1.136170
OPENESS 1.07E-05 1.492760 1.024065
From the table above with the test of variance inflation factors (VIF), the results of the Centered
VIF column show that both independent variables have results less than 10% significant level,
implying that all four independent variables have no multicollinearity.

b) Testing for Ramsay Regression Equation Specification Error Test

Ramsey RESET Test

Equation: UNTITLED
Specification: GROWTH_GDP C FDI INFLATION
LKIEUHOI
OPENESS
Omitted Variables: Squares of fitted values
Value df Probability
t-statistic 1.977934 99 0.0507
F-statistic 3.912223 (1, 99) 0.0507
Likelihood ratio 4.069440 1 0.0437

Based on the F-statistic having 2 degrees of freedom we can assume that Stata included two
higher order terms of the fitted values in auxiliary regressions. With an F-value of 0.0507 and
a corresponding p-value of 0.0507 , the RESET test results imply that we cannot reject the
null hypothesis that the model has no omitted variables. In other words, we do not find strong
evidence that the chosen linear functional form of the model is incorrect.

6
 c) Testing for Heteroskedasticity test

Heteroskedasticity Test: Breusch-Pagan-Godfrey

F-statistic 5.745995 Prob. F(4,100) 0.0003
Obs*R-squared 19.62303 Prob. Chi-Square(4) 0.0006
Scaled explained SS 33.33867 Prob. Chi-Square(4) 0.0000

According to the results of the above table, we see that nR2 = 19,6230 has a corresponding p-
value probability of 0.0006, less than the 10% significance level, so we reject H0: the model
has Heteroskedasticity errors.In the other words, the regression model of GDP_growth in
inflation, kieu_hoi and trade_gdp have the Heteroskedasticity errors

d) Dealing with heteroskedasticity test by using weighted least

squares(OPENESS)

Dependent Variable: GROWTH_GDP

Method: Least Squares
Date: 07/18/18 Time: 20:08
Sample: 1 105
Included observations: 105
Weighting series: 1/OPENESS
Weight type: Inverse standard deviation (EViews default scaling)
White heteroskedasticity-consistent standard errors & covariance
Variable Coefficient Std. Error t-Statistic Prob.
C 4.672161 0.897874 5.203583 0.0000
FDI 6.02E-12 7.09E-12 0.848859 0.3980
OPENESS 0.002302 0.039726 0.057944 0.9539
LKIEUHOI 0.865466 0.318497 2.717345 0.0078
INFLATION -0.162725 0.047865 -3.399626 0.0010
Weighted Statistics
R-squared 0.333019 Mean dependent var 4.919208
Adjusted R-squared 0.306340 S.D. dependent var 6.491131
S.E. of regression 3.433658 Akaike info criterion 5.351577
Sum squared resid 1179.001 Schwarz criterion 5.477956
Log likelihood -275.9578 Hannan-Quinn criter. 5.402789
F-statistic 12.48235 Durbin-Watson stat 1.963957
Prob(F-statistic) 0.000000 Weighted mean dep. 4.642118
Wald F-statistic 6.403166 Prob(Wald F-statistic) 0.000125

7
Hence,

- Two variables FDI, OPENESS have no causal effect on GDP growth at 5%

significant level
- Two variables LKIEUHOI, INFLATION have cause a causal effect on GDP growth
rate at 5% significant level.

III. THE NON-NORMALITY RELATIONSHIP BETWEEN

KIEUHOI AND GDP GROWTH
The variables KIEUHOI2 is the second form of independent variable kieu_hoi which included
in the model to verify the non-normality relationship between KIEUHOI and GDP growth.

1. Regression model

Dependent
Variable:
GROWTH_GDP
Method: Least
quares
Sample: 1 105
Included observations: 105

Coefficie
Variable nt Std. Error t-Statistic Prob.

C 3.092322 0.312018 9.910720 0.0000

FDI -1.43E-12 3.14E-12 -0.454358 0.6506
INFLATION -0.086656 0.032118 -2.698021 0.0082
KIEU_HOI 0.287280 0.084166 3.413264 0.0009
KIEUHOI2 -0.011209 0.003666 -3.057857 0.0029
OPENESS -0.008892 0.003267 -2.721756 0.0077

Mean dependent 3.03017

R-squared 0.204350 var 9
Adjusted R- 2.04753
squared 0.164165 S.D. dependent var 3
Akaike info 4.14726
S.E. of regression 1.871937 criterion 9
4.29892
Sum squared resid 346.9105 Schwarz criterion 4
Hannan-Quinn 4.20872
Log likelihood -211.7316 criter. 3
2.03315
F-statistic 5.085305 Durbin-Watson stat 9
Prob(F-statistic) 0.000343

8
Regression equation

GDPGROWTH = 3.092322 – 1,43.10-12 FDI – 0,086656INFLATION +

0,287280KIEU_HOI - (0,312018) (3,14.10-12 ) (0,032118)
(0,084166)
0,011209KIEUHOI2 – 0,008892OPENESS
(0,003666) (0,003267)

Comments

- When direct foreign investment increased 1 billion USD, then GDP growth rate
decreased 1,43.10-12% in the context that other factors remained unchanged.
- When inflation increased 1% then GDP growth rate decreased 0.086650% in the
context that other factors remained unchanged.
- When KIEU HOI increased 1 billion USD then GDP growth rate increased
0,2872805% in the context that other factors remained unchanged.
- When trade openness increased 1% then GDP growth rate decreased 0,008892% in
the context that other factors unchanged.
- When considering a partial impact of independent variables on GDPGROWTH
variables, we can conclude
- INFLATION, KIEU_HOI, KIEUHOI2, OPENESS have a causal effect on
GDPGROWTH variable at 5% significant level.
- FDI variable have no effect on GDPGROWTH at the 5% significant level so that we
could remove this variables from regression model.
- As Probability (F-statistic) less than at the 5% significant level. Hence, all 4
independent variables have same effect on GDP growth rate at the 5% significant
level.

2. Testing for estimating Standard errors

a) Testing for Ramsay Regression Equation Specification Error test

Ramsey RESET Test

Equation: UNTITLED
Specification: GROWTH_GDP C FDI INFLATION
KIEU_HOI KIEUHOI2
OPENESS
Omitted Variables: Squares of fitted values

Probabilit
Value df y
t-statistic 1.564726 98 0.1209
F-statistic 2.448367 (1, 98) 0.1209
Likelihood ratio 2.591017 1 0.1075

9
From the above table, p-value= 0,1209 more than at the 5% significant level so we accept null
hypothesis H0: the model is not Ramsay RESET test . It means that regression model of
GDPGROWTH according to FDI, INFLATION, KIEU_HOI, KIEUHOI2, OPENESS have no
Ramsay RESET errors.

b) Testing for Multicollinearity

Variance Inflation Factors

Date: 07/18/18 Time: 20:19
Sample: 1 105
Included observations: 105
Uncentere
Coefficient d Centered
Variable Variance VIF VIF

C 0.097355 2.917199 NA
FDI 9.86E-24 1.193368 1.068401
INFLATION 0.001032 1.328641 1.013082
KIEU_HOI 0.007084 8.770976 5.942650
KIEUHOI2 1.34E-05 6.469537 5.782118
OPENESS 1.07E-05 1.501755 1.030236

From the above table, Centered VIF less than 10 at the 5% so we accept H0: the model is no
Multicollinearity. In the other words, the regression model of GDPGROWTH according to
FDI, INFLATION, KIEU_HOI, KIEUHOI2, OPENESS are not Multicollinearity

c) Testing for Heteroskedasticity Test

Heteroskedasticity Test: Breusch-Pagan-Godfrey

F-statistic 4.242384 Prob. F(5,99) 0.0015

Obs*R-squared 18.52771 Prob. Chi-Square(5) 0.0024
Scaled explained
SS 31.13325 Prob. Chi-Square(5) 0.0000

According to the result of the above table, we recognize that nR2=18,52771 has p-value=
0,0024 less than at the 10% significant level. Therefore, we reject null hypothesis H0: the
model has Heteroskedasticity errors. It means that GDPGROWTH according to FDI,
INFLATION, KIEU_HOI, KIEUHOI2, OPENESS has Heteroskedasticity errors.

10
 d) Dealing with Heteroskedasticity test by using Weighted Least
Squares(OPENESS)
Dependent Variable: GROWTH_GDP
Method: Least Squares
Date: 07/18/18 Time: 20:22
Sample: 1 105
Included observations: 105
Weighting series: 1/OPENESS
Weight type: Inverse standard deviation (EViews default
scaling)

Coefficie
Variable nt Std. Error t-Statistic Prob.
C 3.694179 0.635135 5.816369 0.0000
INFLATION -0.172077 0.046867 -3.671569 0.0004
KIEUHOI2 -0.034930 0.010256 -3.405844 0.0010
KIEU_HOI 0.663218 0.156320 4.242691 0.0000
OPENESS 0.006551 0.021162 0.309542 0.7576
FDI 3.21E-12 4.13E-12 0.777073 0.4390

The regression model as follows:

GDPGROWTH = 3,694179 + 3,21.10-12 FDI – 0,172077INFLATION +

0,663218KIEU_HOI - (0,635135) (4,13.10-12 ) (0,046867)
(0,156320)
0,034930KIEUHOI2 – 0,006551OPENESS
(0,010256) (0,021162)

- FDI variables and OPENNESS variables have no causal effect on GDP growth at the
5% significance level.
- Turning INFLATION, the variable KIEU_HOI and the variable KIEUHOI2 have a
causal effect on GDP growth at the 5% significance level.

We see that p-value of the variable KIEUHOI2 is 0.001 less than 0.005 so there is the
non-normality relationship between KIEUHOI and GDP growth rate. The graph of the
model has inverted U shape. The coefficient of the regression model of KIEUHOI2 less
than 0, thus, the first KIEUHOI increased the rate of economic growth, then reaching to
extreme point, KIEUHOI reduced economic growth.

11
IV. IN CONCLUSION
- The independent variables illustrate that GDP growth rate has statistical significant at
the 5% significant level is INFLATION, KIEUHOI. The independent FDI and trade
openness have no statistical significant at the 5% significant level
- With the result from regression model, we see that INFLATION has negative impact
on economic growth. On the other hand, the proportion of foreign capital inflows-
represented KIEUHOI has positive impact on economic growth. Thus, there is the
nonreality relationship between GDP growth and KIEUHOI.
- OLS regression model with 4 independent variables has data collected from 105
countries in 2016 – assumed to be non-endogeneity. After testing for multicollinearity
and Heteroskedasticity errors, dealing with heteroskedasticity test did not violate
hypothesis and explain for independent variables.

12
V. REFRENCES
GDP growth, World Bank Data
https://databank.worldbank.org/data/reports.aspx?source=2&series=NY.GDP.MKTP.KD.ZG
&country
Foreign direct investment, net inflows( BoP, Current USD), World Bank Data
https://databank.worldbank.org/data/reports.aspx?source=2&series=BX.KLT.DINV.CD.WD&
country
Inflation, World Bank Data
https://databank.worldbank.org/data/reports.aspx?source=2&series=NY.GDP.DEFL.KD.ZG&
country
Trade(% GDP), World Bank Data
https://databank.worldbank.org/data/reports.aspx?source=2&series=NE.TRD.GNFS.ZS&cou
ntry
Personal remittances, and received, World Bank (current USD)
https://databank.worldbank.org/data/reports.aspx?source=2&series=BX.TRF.PWKR.CD.DT&
country

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VI. APPENDIX
Country Industrialized/Developing
openess kieu hoi inflation growth GDP FDI

Algeria 0 17.05213403 0.17438359 0.889903894 3.3 1637370975

Argentina 0 -14.3326801 0.09714135 40.07469064 -1.82254217 3260164342
Armenia 0 379.5894044 13.1074642 0.268575079 0.199999998 338115182.3
Australia 1 14.42058558 0.1701417 -0.45836818 2.827310511 42579991135
Austria 1 69.72633281 0.744414 1.088852144 1.450915438 -29948413982
Bangladesh 0 5.335557217 6.11700608 6.727860072 7.113465228 2326967495
Barbados 0 41.30998775 2.39160951 -3.13918397 2 228292052
Belgium 1 116.5089803 2.1657178 1.584435879 1.412292015 37013224306
Benin 0 17.98668311 2.58422471 -0.27999529 3.96485991 131685942.7
Bolivia 0 13.22750953 3.58616172 -1.35486924 4.263919404 335365530.4
Botswana 0 22.50711284 0.1573454 11.95754249 4.31550627 129127201.6
Brazil 0 -7.08567728 0.15272036 8.144388499 -3.46816286 78248380008
Bulgaria 0 31.37296428 3.12836597 2.246224087 3.941097844 1655550000
Burkina Faso 0 10.46772478 3.46812068 4.02412944 5.924577561 390311401.4
Cabo Verde 0 25.6613323 13.0550356 -0.8351781 3.817470428 121946001.9
Cambodia 0 18.25806206 1.85141569 3.456117371 6.953094396 2287033631
Cameroon 0 9.436505922 0.83455018 0.030554319 4.450453266 663725132
Canada 1 45.5073772 0.0839668 0.612168438 1.414102746 34612041093
Chile 1 43.85348283 0.01771233 4.725454632 1.265867603 12373872559
China 0 5.527435325 0.31476729 1.138017622 6.7 1.7475E+11
Colombia 0 17.84867178 1.75039326 4.878311541 2.043059733 13848995437
Congo, Dem. Rep. 0 24.8359446 0.04567694 4.349249135 2.399379098 1204708617
Croatia 0 30.07735806 4.2648379 -0.08434969 3.165417824 1864321648
Cyprus 0 38.32941376 1.62295183 -0.68443944 3.396787702 2607132723
Czech Republic 1 58.45727306 1.60077147 1.235923138 2.59332602 10850612308
Denmark 1 51.41046701 0.40782559 -0.04644416 1.964077129 8529083433
Dominican Republic 0 8.142115767 7.61428537 0.87189386 6.612208223 2516100000
Ecuador 0 -24.6322553 2.64879185 0.90947269 -1.57637918 755392868.1
Egypt, Arab Rep. 0 6.906802286 5.61662262 6.245663134 4.346643456 8106800000
El Salvador 0 27.88523433 19.2322593 0.624392836 2.580577366 479469380.7
Estonia 1 74.68891059 2.05106842 1.592692393 2.063262785 741621537.8
Fiji 0 205.2290227 5.76093045 6.535053832 0.380003448 281832467.5
Finland 1 34.09579183 0.34861612 0.790898505 2.135381815 4503963931
France 1 51.47044645 0.98871216 0.180995214 1.187650381 35407746869
Georgia 0 36.12866347 10.5771558 4.189155709 2.848973396 1607524777
Germany 1 43.35571326 0.47291855 1.329210699 1.943625428 58056857839
Ghana 0 24.00473231 6.96188028 17.80909065 3.721902905 3485333369
Greece 1 -252.296971 0.17203545 -0.95630522 -0.24431474 3060785237
Guatemala 0 15.19969648 10.8811571 3.698831785 3.092487959 1174500000
Guyana 0 30.25437875 7.68185311 7.123330181 3.316131655 31999078.17
Honduras 0 26.78142139 17.8513695 3.466546914 3.75214891 1147030450
Hong Kong SAR, China 0 171.8543853 0.1244987 1.657979886 2.162923295 1.33259E+11
Hungary 1 76.3571305 3.70361306 0.959284367 2.21318749 69815566674
Iceland 1 12.0858199 0.99134177 2.113044654 7.481450239 -1066286957
India 0 5.672846904 2.75892817 3.463897722 7.112686097 44458571546
Ireland 1 43.01463183 0.194892 0.020732442 5.141460154 79163353503
Israel 1 14.27483726 0.30319668 0.843294245 4.094335591 11902600000
Italy 1 65.65710294 0.51168794 0.848446622 0.85826263 19635898219
Jamaica 0 55.55124932 17.3112228 4.595385589 1.373527361 790449854.2
Japan 1 33.32635493 0.07739416 0.273557738 0.938193886 39323365428
Kazakhstan 0 54.82872417 0.20060773 13.63843362 1.1 16779566908
Kenya 0 6.261742002 2.46156198 8.133617004 5.869192849 393359420.9
Korea, Rep. 1 26.52944562 0.45971027 1.977968551 2.929304795 12104300000
Kuwait 0 26.68768382 0.00359971 -6.13364363 3.547005088 292026510.2
Latvia 0 53.95976968 4.44682863 0.273965388 2.208819298 243503898.5
Lithuania 0 62.94994733 2.991772 0.950554934 2.344880739 962297446.9
Luxembourg 1 132.1693956 2.92837351 -1.30938905 3.082643316 26857367248
Madagascar 0 16.56846862 2.5043637 6.680803451 4.179990236 540842779.8
Malawi 0 31.36330137 0.63055991 19.54413214 2.484040626 325632351
Malaysia 0 30.48559661 0.54088506 1.951206348 4.21985132 13470089672
Mali 0 10.76036504 6.67496265 1.53036529 5.799999995 125530920.7
Malta 0 49.99825786 1.99514072 1.628421333 5.230584947 2479130071
Mauritius 0 25.90262018 0.01058052 2.184898896 3.79999999 349418573.6
Mexico 0 26.1636228 2.66418764 5.362774773 2.913328277 34775685489
Moldova 0 25.46671413 21.5461395 5.714210014 4.499999966 90970000
Mongolia 0 76.92987827 2.32375671 2.123294672 1.243202563 -4156404704
Mozambique 0 29.44949654 0.8476973 12.26039573 3.762943039 3128149929
Namibia 0 150.1276789 0.58783181 10.00843323 0.700099218 359511219.7
Nepal 0 118.3743938 31.2883011 5.07174288 0.412891877 105996375.6
Netherlands 1 69.63479662 0.17174346 0.584057801 2.209941516 1.85753E+11
New Zealand 1 14.78423819 0.22195592 3.175180996 3.471456835 1934890721
Nicaragua 0 20.41211546 9.61775482 4.891522297 4.658759192 898900000
Niger 0 10.02311485 2.31703679 0.240416189 4.925714486 301127925.2
Nigeria 0 -12.8164493 4.86327851 9.54367007 -1.61686895 4445102771
Norway 1 61.76086861 0.15996043 -1.11406997 1.091465072 -18642107229
Oman 0 14.26636666 0.05837939 -7.97436452 5.384165936 1680894668
Panama 0 17.49666906 0.86854382 1.395177086 4.988592404 5994600000
Paraguay 0 20.21879906 2.39518922 5.279240562 4.019554951 411466000
Peru 0 11.45309955 1.50484854 2.879499695 3.951309192 6862893056
Philippines 0 9.439371309 10.2141977 1.699096194 6.875714823 8279548275
Poland 1 35.07711594 1.42384304 0.416249587 2.864328679 16758000000
Portugal 1 48.86775449 0.20693042 1.517649335 1.619414633 9422380926
Qatar 0 40.08509908 0.24832185 -9.41745882 2.223120972 773901098.9
Romania 0 17.33521085 1.8576679 2.051854148 4.820774465 6252035766
Saudi Arabia 0 37.02888111 0.04768257 -3.04643099 1.670642347 7452533333
Senegal 0 10.81394429 13.7285327 1.113505432 6.741818201 392815564.9
Serbia 0 38.42904975 8.36753831 2.534554856 2.797323719 2354734451
Slovak Republic 1 55.86891214 2.36096444 -0.44841208 3.324695296 3548472664
Slovenia 1 46.42176526 0.81484421 0.895670078 3.14835549 1461635216
South Africa 0 107.5247789 0.25541899 6.773839173 0.565362939 2215307020
Spain 1 19.20193161 0.21252935 0.283304212 3.27446274 32116526541
Sri Lanka 0 11.19051075 8.87883091 4.080132361 4.468829688 897049375.9
Swaziland 0 74.66636368 2.64526522 5.258830205 1.368694073 27049949.52
Sweden 1 25.87608181 0.56139208 1.593251406 3.234941922 8108326161
Switzerland 1 87.50750111 0.37340602 -0.56614353 1.375884496 60477422917
Thailand 0 37.06077457 1.52275443 2.36083091 3.282683075 3063235324
Togo 0 19.56699648 8.00336658 2.128280093 5.398146189 254938420.8
Tunisia 0 82.50014781 4.32985487 5.556234844 1.108392968 695100945.1
Turkey 0 14.70418454 0.13731276 8.098262201 3.183831543 13343000000
Uganda 0 10.14084572 4.75955678 3.52515135 4.656575598 625704361.9
Ukraine 0 45.41833518 10.1554104 17.14239528 2.307601934 3441000000
United Kingdom 1 30.26272711 0.17286091 1.974342691 1.93579095 2.65811E+11
United States 1 17.89557311 0.03515267 1.275800039 1.485279193 4.79415E+11
Uruguay 0 24.44684055 0.16142653 7.345490947 1.689798162 -379108950.5
Vietnam 0 29.73625481 5.78732538 1.110649186 6.210811668 12600000000

Data from World Bank in 2016

14
Country prischool
openess kieu hoi inflation growth GDP FDI

Albania 6 20.3249731 10.053209 1.374891229 3.841363666 1033077119

Argentina 6 8.734375808 0.09080173 25.34917599 2.863922897 11857007633
Armenia 6 11.79379787 13.3408829 2.231565794 7.499999999 245716807.5
Australia 5 21.4004373 0.15163178 3.701453585 1.957575422 48752327242
Austria 6 34.49699023 0.72084117 1.55636179 3.035272679 13766647743
Azerbaijan 6 906.6375942 2.78142922 15.95333585 0.099999814 2867487000
Belgium 6 97.93384584 2.13350587 1.677988141 1.729766762 -31065193252
Bangladesh 6 4.846648351 5.40526286 6.278682233 7.284208377 2151370680
Bulgaria 7 36.81506994 3.88038199 1.178293011 3.561642856 1656240000
Bosnia and Herzegovina 6 28.6757539 10.9864432 2.346415951 3.031388275 434191926.7
Belarus 6 55.14346981 2.20471648 8.17536314 2.421906267 1274200000
Belize 5 127.7043622 4.90829795 0.095764209 0.883603673 25637115.5
Bolivia 6 13.5165327 3.47947445 6.061399101 4.195207019 724658401.2
Brazil 6 24.71069642 0.13129474 3.791215029 0.976085681 70332268298
Bhutan 6 10.85706939 1.71800776 7.548929322 6.818777705 -10991204.89
Canada 6 21.02240919 0.08090588 2.273096464 3.047350681 27525629251
Switzerland 7 109.4084092 0.36811212 0.353549558 1.086792219 37863913626
Chile 6 37.381607 0.01610708 4.651401381 1.489906004 6418583061
China 6 5.478753565 0.23424436 4.05448338 6.9 1.68224E+11
Colombia 6 19.7153891 1.81254676 4.820863541 1.768071778 14518046033
Cabo Verde 6 26.48707064 11.9867149 1.139502261 3.891335233 109144061
Costa Rica 6 21.17074683 0.98476175 1.978312517 3.191803724 2997316625
Cyprus 6 33.92173443 1.67221483 1.52089328 3.879754768 10512157173
Czech Republic 6 35.36798904 1.66385228 1.303824531 4.289078941 9210079462
Germany 6 39.09337773 0.4562119 1.537468922 2.222824755 77983391530
Denmark 6 46.14088644 0.41602898 1.555341415 2.240138922 -2266366825
Dominican Republic 6 11.6262853 8.13600053 3.672633475 4.551815138 3597200000
Ecuador 6 14.02063967 2.76456632 1.463070759 2.998152934 606425412.3
Egypt, Arab Rep. 6 10.71140308 9.56960671 22.93255423 4.181221 7391700000
Spain 6 21.4694866 0.2287658 0.954824617 3.051719616 4306585066
Estonia 7 31.22714786 1.92582285 3.977280948 4.854136829 853031310.2
Finland 7 29.12261465 0.34960718 0.932456147 2.634254746 10851152858
United Kingdom 5 34.95050577 0.16746624 1.963555889 1.787150985 46622216825
Georgia 6 22.57853791 11.8339724 6.485833026 4.98609476 1801969932
Ghana 6 10.65365842 7.47181234 13.39470133 8.507156219 3254990000
Greece 6 49.96288578 0.15411913 0.669504795 1.351328389 4021758192
Guatemala 7 16.54050037 11.1781134 3.619188154 2.760329473 1034800000
Hong Kong SAR, China 6 98.9334115 0.1279541 2.931019144 3.79134856 1.22401E+11
Honduras 6 21.40217265 18.8121741 4.211120495 4.78529791 1264579024
Croatia 7 36.12168755 4.5327131 1.167417744 2.778282661 2100607083
Hungary 7 43.21205589 3.33317882 3.665601803 3.98871037 -14834406807
Indonesia 7 7.801643596 0.88743849 4.244464291 5.067680274 22078215176
India 6 6.135368448 2.65514572 2.997597738 6.624227116 39978394935
Ireland 5 26.64453733 0.18508563 -0.30837285 7.802381608 51526357548
Iceland 6 24.65870908 0.87590216 0.481958379 3.642226802 -7023257837
Italy 6 39.61588278 0.5069898 0.629108923 1.502291372 19838057158
Jordan 6 47.00698943 11.0610405 1.654327085 1.970023751 1664788732
Kenya 6 8.064755078 2.61943669 2.701080066 4.88544448 671728846.8
Kyrgyz Republic 7 22.29808437 32.8600645 4.575617135 4.583638398 93791000
Korea, Rep. 6 26.37457593 0.40660436 2.265177789 3.062768462 17052800000
Sri Lanka 5 16.40748298 8.24814709 8.243715077 3.112558095 1374894657
Lithuania 7 41.94417731 2.75966733 4.254472523 3.828936273 1061545139
Latvia 7 26.87478091 4.1802132 3.058498607 4.549337701 1137669498
Morocco 6 20.3551732 6.27390435 -6.6002E-09 4.100000007 2645339460
Moldova 7 25.15582095 20.1717577 6.275456651 4.4999999 208460000
Maldives 6 17.03764632 0.08738125 0.032873497 8.828456057 517487323.7
Mexico 6 38.08603815 2.66258329 6.133853849 2.036585834 31725920209
Macedonia, FYR 6 6135.527227 2.7725845 3.470105956 0.02020369 430697606.1
Montenegro 6 24.69758806 9.09322196 2.72240441 4.300004056 548477126.6
Mongolia 6 19.81225332 2.37956026 10.58966574 5.88462458 1494350363
Mozambique 6 29.34941783 1.39367064 9.772024759 3.710697424 2319071971
Mauritania 6 31.22121972 1.53581656 4.199952771 3.5 588217194.8
Malawi 6 16.33234309 0.64886277 13.46150517 4.000030517 277112167.4
Namibia 7 -109.267598 0.31025073 6.821714114 -0.77033537 417218271.5
Nicaragua 6 19.8825335 10.096088 4.911494311 4.861094976 896600000
Netherlands 6 50.99168576 0.17595825 1.146152349 3.162212293 3.14942E+11
Norway 6 35.7130808 0.15469638 3.845490451 1.918745912 -4928978668
Nepal 5 6.903846295 28.3104375 7.585506745 7.499402289 196265098.6
Pakistan 5 4.523740612 6.45642977 4.00052159 5.700621241 2815000000
Peru 6 18.54336895 1.44342185 3.939754649 2.527430678 6769497317
Philippines 6 10.57006714 10.4624591 2.32070851 6.684517503 10049367206
Poland 7 22.58939223 1.30922303 2.010425084 4.550386923 6268000000
Portugal 6 31.79182232 0.20803116 1.36882027 2.679827103 10022959166
Paraguay 6 109.5509626 2.36783615 5.541297547 0.772051674 439319040
West Bank and Gaza 6 23.63276664 14.7804049 4.699842485 3.14023678 203376299.1
Romania 6 12.23748421 2.0297636 5.277864192 6.947074694 4949688374
Russian Federation 7 30.23237613 0.50960868 5.209266621 1.545630229 27886310000
Rwanda 7 8.362662913 2.35635013 7.315167554 6.100594048 293413074
Sudan 6 5.021431262 0.18124087 32.8613567 4.283071004 1065298481
El Salvador 7 31.2356698 20.3747077 1.380712237 2.322597438 330917516.7
Serbia 7 60.89088917 8.65769417 2.835715452 1.867428896 2878817772
Suriname 6 1357.048128 0.0197616 21.78381804 0.095480586 158746081.5
Slovak Republic 6 55.63861091 2.25751895 1.277337121 3.400166311 5921628927
Slovenia 6 30.94779744 0.82238051 1.976204636 5.000808222 1022528070
Sweden 7 37.778712 0.55134638 2.08727487 2.28811587 28828253547
Tajikistan 7 7.971948297 31.5635816 4.722523248 7.100000708 200105714
Turkey 6 7.302149885 0.12313442 10.80867496 7.418643975 10904000000
Uganda 6 11.20308571 4.78842154 5.988870003 3.964779888 699499135.7
Ukraine 6 40.87818623 10.8484583 22.1120578 2.500467472 2428000000
Uruguay 6 15.0517779 0.17839827 4.024704852 2.656684456 26750532.89
Vietnam 6 29.40429398 6.15588046 4.124919316 6.81224566 14100000000
South Africa 7 44.07343351 0.24990377 5.536708905 1.32006117 1371931600
Zambia 7 17.57065751 0.36283973 9.238411706 4.076715497 865903085.2

Data from World Bank in 2017

15