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Bus073: Development Economics - Assessment Answer

Assignment Task:

Your final assignment consists of two parts:

  • First, analysing two datasets using the statistical software STATA (represents 20% of your total grade). As mentioned in the Module Outline, the guidelines for this data assignment will be emailed by this 20 March 2020, along the stata files. This data assignment can be done individually or in a group of up to four people. Students will receive instructions by 20 March on how to specify whether will do this data assessment individually or in groups.  Please patiently await for further communication on this.

  • Second, writing an essay a maximum and strict upper limit of 2,500 words excluding references, appendices, tables (any words written beyond that will not be read). This document provides the guidelines for your essay.

Empirical essay

Empirical essays analyse data from a developing country (countries) using econometric methods with the aim of gaining knowledge on an important research question. These essays will be assed based on the quality of arguments and method presented, and not on whether the results presented support the hypothesis being tested.  

Typical structure of an empirical essay

1. Introduction

This section describes the question you want to address empirically, and why is important for the developing word.  This is not the place to do an extensive literature review nor describe in detail your results. However this section needs to very broadly describe the hypotheses you will test, the data used and results.  Also briefly explain your contributions. Is it new data not previously analysed? Are you answering a question more broadly/specifically? If your analysis is inconclusive, it is fine, as long as you are clear about it, and why you think found no evidence.

2. Literature Review

This section should discuss and critically review previous research that is directly relevant to your essay. You can refer to empirical or theoretical research. Discuss what can we learn from these previous studies, what are the shortcomings.

Depending on your essay topic you might also include here a subsection of historical background/setting of problem you are assessing.

3. Hypotheses to test

In this section you want to discuss the hypotheses that you are going to empirically test based on the literature review.  Provide a rational of why you are testing these hypotheses and what predictions you think are based on previous literature.

4. Econometric Model

 

This section consists of two parts. First, you should write out the basic econometric specification and explain how this model will help you test your hypotheses. Discuss whether you are using basic OLS, IV, etc. and why this is appropriate.

Second, present your results. Interpret the meaning of the regression coefficients, and whether they confirm your stated hypotheses and why it might be important for the development literature.   

Tips on interpreting results:

  • Your results tables should state your dependent variable and control variables. Report standard errors. Look at the do file we did in our state seminar. 
  • Discuss the most interesting and important estimates. Are the parameter estimates are statistically significant, what is the sign? Do these estimates support your hypotheses? 
  • If you don’t get significance to suggest why that might have the case. Do you have enough data?

 

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