I’m stuck on a Economics question and need an explanation.

Emerging Giants: The Economic Rise of China and India

Assignment 6: Institutions and Corruption

Due: Thursday, November 21, 4:05 p.m.

In this assignment, you will find and analyze data on a measure of democracy for China and India. You will then determine whether democracy is correlated with development.

Datasets:

Polity IV

http://www.systemicpeace.org/inscrdata.html (website where dataset can be found)

http://www.systemicpeace.org/inscr/p4v2017.xls (data in Excel)

http://www.systemicpeace.org/inscr/p4manualv2017.pdf (codebook in PDF)

World Bank World Development Indicators (GDP per capita)

http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators

Background data collection and analysis:

1. Download democracy data for China, India, and Canada starting in the year of the 1960s corresponding to the last digit of your B00 number. For example, if your B00 number ends in 5, collect data starting in 1965. Find data through the year 2017. Use the series polity2.

2. For China and India (separately), calculate the correlation coefficient between democracy and GDP per capita (use the series GDP per capita (constant 2010 US$)). As each country has developed economically, has it become more democratic?

3. Choose a sample of 20 countries (not China or India), half with 2017 polity2 scores below zero, and half with 2017 polity2 scores above zero. For this sample of 20 countries, calculate the correlation coefficient between democracy (polity2) and GDP per capita (GDP per capita (constant 2010 US$)). Is democracy positively correlated with income per capita?

Essay:

In your essay, describe the level of democracy in China and India and show how it has changed over time. Describe how polity2 is constructed and explain why it is used as a measure of democracy. Compare the two countries to each other and to Canada, and discuss whether GDP per capita is associated with democracy. Kaufmann et al. (1999) show that GDP per capita is highly correlated with measures of governance. Do you also find that GDP per capita is correlated with democracy?

Detailed Instructions:

Your essay must have a title, an introduction, and a conclusion. Make sure to define your terms and provide appropriate background information. A possible essay structure contains five paragraphs:

  • a first paragraph that briefly introduces the argument you will make in the essay;
  • and a fifth, concluding, paragraph that briefly describes the main points you have made in the essay.

a second paragraph describing how democracy has changed over time;

a third paragraph describing how democracy is correlated with per-capita GDP in China and India;

a fourth paragraph describing how democracy is correlated with per-capita in your group of 20 countries;

The maximum length is 500 words plus a two-page data appendix; include a word count at the end of your submission. Include the grading rubric as the first page of your submission. Use Chicago or APA style, and write in 11- or 12-point font, double-spaced, with one-inch margins. Provide a bibliography listing the references you use, including the class PowerPoints if relevant. You must submit a hard copy (in class) and an electronic copy (on Brightspace) by the deadline. Please note that the electronic copy will be submitted to anti-plagiarism software.

Data Appendix:

The data appendix should include enough detail for the grader to determine that you downloaded the correct data and performed the calculations accurately; if not all of your data fits on two pages, you may decide to include only the first and last years of information. Required charts and figures go into the body of your essay; any supplemental charts and figures should be placed in your data appendix.

Penalties:

  • Late submissions: -10 points per day, starting immediately after 4:05 p.m.
  • Over 500 words: -1 point for each additional 50 words (e.g., -1 for 501 words, -2 for 551 words, etc).

If you submit only an electronic copy and no hard copy, you will receive a zero on the assignment.

If you submit only a hard copy and no electronic copy, you will receive a zero on the assignment.

No rubric: -1 point.

No data appendix: -2 points.

Data appendix over two pages: -1 point for each additional page.

No word count: -2 points.