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

ECS3709 Assignment 4 PORTFOLIO (COMPLETE ANSWERS) Semester 2 2026 - DUE October 2026; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.8.1..2.7.8..3.3.7.2... Ensure your success with us. .. Technological progress is a key determinant of long-run economic growth. One channel through which developing economies may gain access to new technologies is through international trade and imported goods. Recent increases in relatively inexpensive vehicle imports from especially China and India have generated concerns about the future competitiveness of South Africa's domestic automotive industry. Read the IOL article titled Cheap car imports from China and India tighten pressure on South Africa’s auto industry, written by Yogasshen Pillay. Using the Solow model as a framework, assess the trade-offs between improved vehicle affordability and consumer choice, and the potential effects of increased import competition on domestic manufacturing, employment, and investment. Technological progress and economic growth Use the AI Preparedness Index (AIPI) to proxy technological progress in a grouping of countries. According to the International Monetary Fund, the AIPI is derived as the simple average of four key dimensions: digital infrastructure, human capital, technological innovation, and legal frameworks. These dimensions are likely relevant for smooth artificial intelligence adoption. Use the IMF Data Mapper to analyse technological progress in the BRICS countries. Take a screenshot of the column chart showing the AIPI and paste it into your answer document. Compare the data for the five countries and explain your findings. Understanding the dynamics of the labour market model Read the World Bank article titled From Demand to Delivery: Strengthening South Africa’s Digital Skills Pipeline to Deliver More and Better Jobs (2026). Read only up to the Feature Story section. Discuss two of the strategies suggested by the World Bank to remedy the situation. Using the labour market model, illustrate graphically and explain how the suggested remedies would affect the demand for digital labour in South Africa. B One of the conflict points in the US-Iran war is around the Strait of Hormuz, a narrow sea passage separating the Arabian Peninsula and Iran. According to the International Energy Agency, around 25 percent of global seaborne oil trade and 20 percent of gas trade flows through the Strait. Restricted trade leads to an increase in the prices of oil and gas, which is a macroeconomic shock. Using the AD–AS model, illustrate graphically and explain how the increase in energy prices could affect the level of prices and output in South Africa. Assume that there is no government intervention and no monetary policy response to restore the economy to its initial equilibrium. Assume that in the initial period, the economy was in long-run equilibrium and resources were fully employed. Relationship between economic growth and institutional quality Analyse the relationship between economic growth and institutional quality using econometrics. Fatás and Mihov (2013) demonstrate how institutions supporting macroeconomic stability could aid economic growth. The central argument is that macroeconomic policy is an important determinant of economic growth. In practice, analysts often use proxies to estimate institutional quality. In this question, business confidence and trade openness are used as proxies. Inflation is also included to capture the general impact of prices. The attached Excel file contains annual data for 1990 to 2022, giving 33 observations. The variables are nominal GDP in millions of rand, BER/RMB Business Confidence Index values, trade openness measured as the average of exports and imports to GDP, and CPI inflation index values. Estimate the following function and include a screenshot of your results: [ ln GDP_i=beta_0+beta_1ln BCI_i+beta_2ln OPEN_i+beta_3ln CPI_i+u_i ] Interpret the estimated coefficients of (hat{beta}_1), (hat{beta}_2) and (hat{beta}_3). Based on the probability values, comment on the statistical significance of the three explanatory variables. Based on the results, write a short paragraph in which you discuss what can be concluded about the links between growth and institutional quality in South Africa. In 2025, India was ranked as the fourth largest economy in the world, and the fastest-growing major economy, projected to grow around 6.5% in 2026. However, India also has the largest population in the world, with around 1.4 billion estimated people. This means that the country is faced with a serious challenge to make sure that it can provide a decent standard of living to all its citizens. In contrast, South Africa has a much smaller population of around 64 million and its GDP growth has been relatively low during the last few years. Working individually and not in a group, access the World Bank Data360 portal to answer the following questions related to standards of living: Compare the trends in GDP per capita for South Africa, India and the World. The data should be based on GDP per capita in constant 2015 US dollars for the period 2010 to 2025. Provide a screenshot showing the line graphs for the selected countries. Compare and explain the trends of GDP per capita between South Africa and India. Also mention how they compare to the World’s trend. The Human Development Index (HDI) is an important measurement of standard of living. Focusing on the most recent statistics, access the United Nations database and provide a fully labelled table showing the HDI as well as its three main indicators for 2023 for South Africa and India, using the supplied table template. Based on your findings, provide your conclusion about the standard of living in each. Savings, investment, and economic growth Researchers such as Harrod (1939) and Solow (1956) have hypothesised on the relationship between savings and economic growth. Savings are posited to be important for growth. The general hypothesis in the empirical and theoretical literature is that by enabling investments, higher savings result in higher growth. Consider two economies in the Solow model, one with a saving rate of zero percent and the other with 100 percent. Explain what is likely going to happen to output and consumption in each case. Differentiate between the concepts of capital accumulation and economic welfare and why it is often difficult to maximise both at the same time. echnological progress is a key determinant of long-run economic growth. One channel through which developing economies may gain access to new technologies is through international trade and imported goods. Recent increases in relatively inexpensive vehicle imports from especially China and India have generated concerns about the future competitiveness of South Africa's domestic automotive industry. Read the IOL article titled Cheap car imports from China and India tighten pressure on South Africa’s auto industry, written by Yogasshen Pillay. Using the Solow model as a framework, assess the trade-offs between improved vehicle affordability and consumer choice, and the potential effects of increased import competition on domestic manufacturing, employment, and investment. Technological progress and economic growth Use the AI Preparedness Index (AIPI) to proxy technological progress in a grouping of countries. According to the International Monetary Fund, the AIPI is derived as the simple average of four key dimensions: digital infrastructure, human capital, technological innovation, and legal frameworks. These dimensions are likely relevant for smooth artificial intelligence adoption. Use the IMF Data Mapper to analyse technological progress in the BRICS countries. Take a screenshot of the column chart showing the AIPI and paste it into your answer document. Compare the data for the five countries and explain your findings. Understanding the dynamics of the labour market model Read the World Bank article titled From Demand to Delivery: Strengthening South Africa’s Digital Skills Pipeline to Deliver More and Better Jobs (2026). Read only up to the Feature Story section. Discuss two of the strategies suggested by the World Bank to remedy the situation. Using the labour market model, illustrate graphically and explain how the suggested remedies would affect the demand for digital labour in South Africa.