申論題

4. (15%) Consider the foilowing growth regression model where Y_i =△ log(GDP_i) x1oo andX _i = △ log(ex port.) x 1oo are GDP growth and export growth, respectively. Regime₁= 1 if the country adopts a fixed exchange rate syster, and otherwise Regime₁ = o.

(a) What is the impact of 1% increase in export growth on GDP growth for countries with a fixed exchange rate regime (ie, fixers)? Now suppose the empirical results are as follows:
where standard errors are in parentheses.