Sample Response
Sample Response
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can refer to it to format and write responses. If you have done it differently, and feel that your
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Sample Question
Introduction:
Table1: Correlations
Appendix: Stata .do file
In this assignment we will explore corruption
Transparency and development
index around the world
GDP per capita using World
Education
expenditure
Bank data for selected countries around the world. In the assignment you will explore the
Transparency index 1
relationship between various economic indicators and the level of government transparency
GDP per
around the capita
world. 0.28 1
Education expenditure 0.13 -0.10 1
Part 1:
(% GDP)
First, summarize the variable “transparency index.” How does transparency vary around the
world from country to country. Provide appropriate graph(s) and statistics.
Next, choose 2 economic indicators. Explore their relationship to transparency. Use appropriate
graphs, correlations or other statistical tests to support your answer.
Do you think any of these relationships are causal? (Suggested 150 words)
Essay Assignment
Part 1
The transparency index measures transparency, accountability, and corruption in the public
sector on a scale of 1-5. As can be seen in the histogram presented in Figure 1, around half of all
countries having a score of between 2.5 and 3.07, with a median of 2.97. The worst performing
10% of countries have scores below 2.
Next, I consider the relationship between corruption and GDP per capita and education
spending. Table 1 lists the correlations. Richer countries are more transparent on a the whole
(r=0.25, p=0.00). Figure 2, plots Log GDP against transparency. There is not evidence of a
relationship between corruption and how much a country prioritizes education spending: the
correlation is small and not statistically significant (p=0.43).
It is likely that GDP and transparency are causally linked in both directions. With higher GDP,
government can be more effective. On the other hand, transparent government provides a
better environment for business and economic growth.