Saudi Arabia

Term Assignment Part 1: Macro based data This assignment should be completed with reference to the data in the file “Saudi_World_Development_Indicators.xlsx” downloaded from the World Bank Database. You should use graphs, summary statistics, correlations and regression analysis as appropriate to address each of the following questions. 1. Comment on the trends in Gross National Income and Gross National Income per capita over the time period 1970 to 2013. Why is GNI per capita taken to be a more reliable measure of welfare than GNI? What are the limitations of this measure in measuring welfare of a population? 2. Comment on the relationship between life expectancy and income per capita. How would you explain this relationship? Is this a causal relationship? Comment on other factors that might explain the correlation between these two variables. 3. An environmental economist hypothesises that key drivers of carbon dioxide emissions per capita are income growth and energy consumption. Does the Saudi Arabian data support her hypotheses? Use graphs/scatter plots, correlations and regression analysis to comment. Do you believe the link connection between CO2 emissions and income is a simple causal relationship, i.e. income growth causes CO2 emissions to rise? Explain your answer.