Empirical Exercise: The Role of Cultural Factors in the Growth Process - Assignment Example

Instrictor’s Cpurse The Role of Cultural Factors in the Growth Process Section A The variation in cultural and measure of centrsl tendsncy for the weildata exercise is done in R and saves as MyData. To get the minimum value of thrift across the various countries, first you use thr omit function, in order to omit NA value from the data set. The results for thrift is shown below based on the numeric value .> #Minimum value forNew_Thrift_Value> min(New_Thrift_Value)[1] 1.9> #Maximum value forNew_Thrift_Value> max(New_Thrift_Value)[1] 73.

1> #Mean value forNew_Thrift_Value> mean(New_Thrift_Value)[1] 37.88696While for faith is given by the following R output> #Minimum value forNew_Faith_Value> min(New_Faith_Value)[1] 1.2> #Maximum value forNew_Faith_Value> max(New_Faith_Value)[1] 91.3> #Mean value forNew_Faith_Value> mean(New_Faith_Value)[1] 37.54839The scatter plot above is for how technology perception is spread across countries. There is a denser scatter data point’s presence in countries that a developed compared to developing one.

Section BThe cultural effect of thrift on national savings is that as that as the working population reduces, savings reduces. As seen in the above graph, there is a larger concentration in savings from value 30 to 50. The age bracket of 30yr -50yr olds (usually within the median working age) is characterized by more savings behaviors just before retirement.Section CThe scatter plot below can be interpreted as showing that, less than 40% perseverance creates a productivity growth. Above 40% to 70% there is a diminishing level of perseverance in relation to productivity growth.

Section DThe effect of technology on productivity is generally variable. The graphical output from R below, indicates that and optimal level of using technology to drive productivity growth is in the region of 50%. Otherwise, technology can have adverse effect on growth if over utilized or underutilized. But generally, positive attitude toward technology is seen to cause growth.Section EFrom the scatter plot below, one can obviously interpret that, a higher wellbeing factor (65% and above) result in a higher per capita income.

Most of the scatter data points are above the zero per capita at the 65% mark. You can probably conclude that higher income countries are happier.Section FIn conclusion, all the cultural factors mentioned above have a significant effect on the overall GDP. This comes in the form of motivation of the labor force by providing social incentives and workable policies. Attitude towards technology, perseverance and wellbeing have been used in previous questions to show how productivity growth is slightly positively these cultural factors.

The policy implication may include implementation of structural funds in order to improve wage rates, increasing interest rates on savings/deposits and better health care for better wellbeing of the citizens.Works CitedCasson, Mark and Andrew Godley. Cultural Factors in Economic Growth. Berlin: Springer, 2000. Print.Guo, Rongxing. Intercultural economic analysis : theory and method. New York: Springer, 2009. Print.