The trend line is showing a growth starting line from 1985 till 2015, according to this trend line it is remarked that during the years; the FDI is evolution upward.
Furthermore the drug-addicted variable is the FDI, whereas the independent variables are GDP, ? EXP, EXC, DEV, and whack. This dependent variable has different relationships with the independent variables.
FDI and GDP fork up a lineal relationship meaning that when GDP ontogenys by $1 Million, the FDI bequeath increase by $127,430(1.2743E-07 * 1,000, 000=$0.12743 Million).
Also, there is a direct relationship amidst FDI and ?EXP. This is batch be illustrated by this precedent: if the ?EXP decreased by 1%, the FDI will be touch negatively and will decrease by $ 55,761,251.95 ($ 55.76125195 Million).
Conversely, FDI and EXC have a negative relationship meaning that when the ration of EXC decreased by 1 unit, the FDI will increase by$ 2,274.892815 Million.
Similarly, any increase in DEV will affect the FDI negatively due to the antonym relationship between this factor and the FDI. So, if the DEV increases by $1 Million, the FDI will decrease by$ 0.685618 Million.
Finally, any increase in bop factor will affect the FDI negatively as they have an inverse relationship indicated by the negative sign of BOP coefficient (- 0.001742827).
In other words, if the BOP increased by $ 1 Million, the FDI will accordingly decrease by $ 1,742.827 ($ 0.001742827 Million).
Q5
After analyzing the relationships between the FDI and the other determinants affecting it, it was noticeable that there are whatever variables that have significant regard, regardless being positive or negative, on the grade of FDI. The determinant which has the most significant impact on the FDI is the EXC (Rate of Exchange Period Average) as it has the largest coefficient among the determinants (- 2,274.892815). In fact, any minor change in the value of EXC can cause a dramatic change in the value of FDI. On the contrary, the small coefficient of the GDP...If you want to get a sufficient essay, order it on our website: Ordercustompaper.com
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