Solved

Regressing GDP Per Capita on a Measure of Openness to Trade

Question 2

Multiple Choice

Regressing GDP per capita on a measure of openness to trade across countries may give biased estimation results because


A) each country measures openness differently
B) without further restrictions, the regression coefficient for openness could be negative
C) openness may capture the effects of omitted variables such as financial reform
D) openness is an index measure, but GDP per capita is measured in monetary units
E) regression is an appropriate econometric methodology only for time series, not for cross-sectional data

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents