1.

1 Variables

Variables of our model are as fallow:

Dependent variable= GDP Growth

Independent variables are:

1) Oil consumption 2) Capital formation 3) Total labor force

1.2 Model

Our model will be multiple linear regression model because in above we have more then on
independent or explanatory variables. so our model will be of such type;

Y = β0+ β1𝑿1+ β2 𝑿2 + β3𝑿3+ µ

Here in the above model

Y=Gross domestic product (GDP)

β0=constant

X1= total capital formation

X2= labor force

X3= total oil consumption

1.3 Hypothesis; Our hypotheses are as fallow

1) H01 = capital having no impact on GDP growth.
HA1= capital has impact on GDP growth.
2) H02 = labor force having no impact on GDP growth.
HA2 = labor force has an impact on GDP growth
3) H03 = oil consumption having no impact on GDP growth.
HA3 = oil consumption has an impact on GDP growth
 YEAR GDP CAPITAL FORMATION OIL CONSUMPTION Labor force
1991 1.74E+12 3.18363E+11 2.54239E+11 17.00690079
1992 1.77E+12 3.2395E+11 2.55936E+11 18.59199905
1993 1.76E+12 3.13175E+11 2.42397E+11 23.50550079
1994 1.8E+12 3.41026E+11 2.57351E+11 27.18050003
1995 1.84E+12 3.66694E+11 2.69396E+11 23.66760063
1996 1.87E+12 3.7551E+11 2.68038E+11 25.02689934
1997 1.91E+12 4.05376E+11 2.90421E+11 26.96269989
1998 1.98E+12 4.53605E+11 3.16706E+11 24.1420002
1999 2.05E+12 4.85143E+11 3.32821E+11 24.73900032
2000 2.12E+12 5.59652E+11 3.52151E+11 19.00139999
2001 2.17E+12 5.72927E+11 3.65127E+11 16.00510025
2002 2.19E+12 5.84032E+11 3.70054E+11 17.47480011
2003 2.21E+12 5.89237E+11 3.6873E+11 16.48920059
2004 2.27E+12 6.25717E+11 3.9026E+11 19.74880028
2005 2.31E+12 6.65242E+11 3.98001E+11 19.46010017
2006 2.36E+12 7.02397E+11 4.25157E+11 20.35589981
2007 2.42E+12 7.42751E+11 4.5526E+11 18.31349945
2008 2.42E+12 7.52288E+11 4.5768E+11 18.5326004
2009 2.35E+12 6.81608E+11 3.97775E+11 24.03490067
2010 2.4E+12 7.42031E+11 4.12128E+11 22.1644001
2011 2.45E+12 7.88689E+11 4.37876E+11 21.35479927
2012 2.45E+12 7.93909E+11 4.45555E+11 24.08589935
2013 2.47E+12 8.10723E+11 4.49958E+11 23.7845993
2014 2.49E+12 8.49709E+11 4.63584E+11 25.11330032
2015 2.51E+12 8.98524E+11 4.86862E+11 25.77969933
2016 2.54E+12 9.36369E+11 4.87339E+11 25.06749916
2017 2.59E+12 9.73876E+11 5.12356E+11 23.1413002

Data of France.
Source: World Bank

Trend Analysis Of data

1. Gross Domestic Product (GDP)
GDP
2.6E+12

2.5E+12

2.4E+12

2.3E+12

2.2E+12

2.1E+12

2.0E+12

1.9E+12

1.8E+12

1.7E+12
92 94 96 98 00 02 04 06 08 10 12 14 16

2. Capital Formation
CAPITAL FORMATION
1E+12

9E+11

8E+11

7E+11

6E+11

5E+11

4E+11

3E+11
92 94 96 98 00 02 04 06 08 10 12 14 16

3. Oil consumption
 OIL CONSUMPTION
5.2E+11

4.8E+11

4.4E+11

4.0E+11

3.6E+11

3.2E+11

2.8E+11

2.4E+11
92 94 96 98 00 02 04 06 08 10 12 14 16

4. Labor Force

Labour force
28

26

24

22

20

18

16

14
92 94 96 98 00 02 04 06 08 10 12 14 16

Combination trend between GDP, Oil consumption, Capital Formation, Labor Force
 2.8E+12

2.4E+12

2.0E+12

1.6E+12

1.2E+12

8.0E+11

4.0E+11

0.0E+00
92 94 96 98 00 02 04 06 08 10 12 14 16

Labour force OIL CONSUMPTION

GDP CAPITAL FORMATION

Quantitative Analysis Of Data

Dependent Variable: GDP

Method: Least Squares
Date: 12/15/18 Time: 19:23
Sample: 1991 2017
Included observations: 27

Variable Coefficient Std. Error t-Statistic Prob.

C 1.17E+12 1.31E+11 8.897245 0.0000

OIL_CONSUMPTION 1.965785 0.743763 2.643024 0.0145
CAPITAL_FORMATION 0.545753 0.304031 1.795056 0.0858
LABOUR_FORCE -1.85E+09 2.44E+09 -0.760319 0.4548

R-squared 0.985131 Mean dependent var 2.20E+12

Adjusted R-squared 0.983191 S.D. dependent var 2.77E+11
S.E. of regression 3.59E+10 Akaike info criterion 51.58061
Sum squared resid 2.96E+22 Schwarz criterion 51.77259
Log likelihood -692.3382 Hannan-Quinn criter. 51.63770
F-statistic 507.9304 Durbin-Watson stat 0.617939
Prob(F-statistic) 0.000000
Heteroskedasticity Test: Glejser

F-statistic 3.021361 Prob. F(3,23) 0.0503

Obs*R-squared 7.632535 Prob. Chi-Square(3) 0.0542
Scaled explained SS 7.455345 Prob. Chi-Square(3) 0.0587

Test Equation:
Dependent Variable: ARESID
Method: Least Squares
Date: 12/15/18 Time: 19:28
Sample: 1991 2017
Included observations: 27

Variable Coefficient Std. Error t-Statistic Prob.

C 1.55E+11 7.16E+10 2.166054 0.0409

OIL_CONSUMPTION -0.887861 0.406619 -2.183521 0.0395
CAPITAL_FORMATION 0.399450 0.166215 2.403211 0.0247
LABOUR_FORCE -1.92E+09 1.33E+09 -1.439370 0.1635

R-squared 0.282686 Mean dependent var 2.53E+10

Adjusted R-squared 0.189124 S.D. dependent var 2.18E+10
S.E. of regression 1.96E+10 Akaike info criterion 50.37292
Sum squared resid 8.85E+21 Schwarz criterion 50.56489
Log likelihood -676.0344 Hannan-Quinn criter. 50.43000
F-statistic 3.021361 Durbin-Watson stat 1.169029
Prob(F-statistic) 0.050327