ECS3709 Assignment 2 (COMPLETE ANSWERS) Semester 2 2026 - DUE 4 September 2026

ECS3709 Assignment 2 (COMPLETE ANSWERS) Semester 2 2026 - DUE 4 September 2026; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.8.1..2.7.8..3.3.7.2... Savings, investment and economic growth [9] Use the data provided for the assessment to answer the following questions: (a) Calculate the correlation coefficient between savings and growth in each of the following Sub-Saharan African countries. Hint: Use the ‘correlation’ function of the Microsoft Excel data analysis tool: Botswana Kenya Provide the screenshot of the correlation results table for each country. (2) (b) Based on the results from (a), compare the correlation coefficients for the two countries and explain your findings. (1) (c) For each of the countries, perform a regression analysis where GDP, is modelled as a function of Savings and Investment. You thus need to run two separate regressions, one for Botswana and one for Kenya. You can make use of the Microsoft Excel data analysis tool, or you can use EViews. [Hint: you must first transform each variable using the logarithm, i.e. ‘log’ function]. Provide the screenshots of your summary output. (4) (d) Based on regression results from (c), compare and discuss the impact of savings and investment on economic growth in Botswana versus Kenya. (2) Q2 Technological progress [6] (a) According to the Solow model, long-run economic growth is determined by technological progress (A). Based on what you have studied about the production function, Y=F(K,AL), mention and explain two assumptions about technological progress. (4) (b) Use the IMF Data Mapper to provide a screenshot showing technological progress in Botswana and Kenya. As proxy for technological progress, you must use the AI preparedness index for ‘Human capital and labour market policies’. Compare the data for the two countries and provide a conclusion.