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Do GDP and Literacy Rate have effects on High Technology Exports? Jessica Jie Xue

Do GDP and Literacy Rate have effects on High Technology Exports? Jessica Jie Xue jx0991a@student.american.edu American University School of International Service. Research Question.

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Do GDP and Literacy Rate have effects on High Technology Exports? Jessica Jie Xue

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  1. Do GDP and Literacy Rate have effects on High Technology Exports? Jessica Jie Xue jx0991a@student.american.edu American University School of International Service

  2. Research Question • Do the economic indicator—GDP and social indicator—Literacy Rate have determined effect on the output of high-technology? • What is the relationship between GDP, Literacy Rate and high-technology exports? • Research Hypothesis • I assume the level GDP and literacy rate will determine the output of high-technology of a country in general, countries with higher GDP and literacy rate, larger quantity of high-technology they export.

  3. Background Information • According to empirical studies, High-technology export has been considered to be one of the significant symbols of sustainable economic growth and development for a country. • Marcel Fafchamps Study • Used data from the Moroccan Ministry of Commerce, Industry and Telecommunications and the World Bank • Discovers a positive link between Human Capital and Export • Florence Jaumotte, Subir Lall, and Chris Papageorgiou Study • Provides that globalization (including Technological Development, Access to Education, Sectoral Share of Employment and Domestic Financial Development) has positive correlation with the distribution of income

  4. Data • Interval-ratio Level Data • Dependent variable: • High technology export as a share of Exports of goods and services (% of total Exports) • Independent Variables • GDP per capita (current US$) by unit • Literacy rate, adult total (% of people ages 15 and above) Sources: World Development Indicators (WDI), the United Nations (UN)

  5. Descriptive Statistics

  6. Bivariate Regression

  7. Regression Analysis Significance: *** <0.001; **<0.01; *<0.5; <0.1 P-values in parentheses

  8. Conclusion • Both GDP and Literacy Rate have positive effects on High Technology Export • GDP per capita is the most significant variable that explains the level of High Technology Export. • Literacy Rate is also significant for the level of High Technology Export, however, it only explains a weak correlation with High Technology Export • Policy Recommendations: • Encourage High Technology Export as a source of economic growth and development • Allot additional resource to education and reducing illiteracy rate

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