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SRM Group6 Developing Countries
SRM Group6 Developing Countries
DEPENDENDENCY
BETWEEN Internet Density AND GDP
By Group-6
Ankita Singh (UM14129)
Anup Kumar Patnaik (UM14131)
Archana Patange (UM14133)
Ayesha Hota (UM14134)
Bhagyashree Patra (UM14136)
Debasis Swain (UM14138)
Naved Alam (UM14149)
Neyati Bhanot (UM14150)
Shreya Subrata (UM14164)
Subhashree Patnaik(UM14171)
PROBLEM STATEMENT
Analysis of the relationship between GDP per
capita and Internet density for developing countries
VARIABLES
A PRIORI Reasoning
Internet users are people with access to the worldwide network.
Internet density basically captures Internet users (per 100 people)
Gross Domestic Product (GDP) is the monetary value of all the
finished goods and services produced within a country's borders in
a specific time period.
GDP per capita is gross domestic product divided by midyear
population.
Here we are trying to establish the relationship between GDP per
capita and Internet density in developing countries
HYPOTHESIS
Null Hypothesis :
Ho : There is no relation between GDP per capita and
the Internet density in developing countries.
Alternate Hypothesis:
H1: There is a relation between GDP and the Internet
density in developing countries.
MASTER DATA
http://data.worldbank.org/indicator/IT.NET.USER.P2/countri
es?page=2
http://data.worldbank.org/indicator/NY.GDP.PCAP.CD/countr
ies/1W?display=default
DATA SOURCE
METHODOLOGY
Dependent variable: Internet density
Independent variable: GDP per capita
Models Used: Simple Linear Model
Yi = + 1 Xi + u
Log linear model
Ln Yi = ln + 1 ln Xi + ei
Quadratic model
Yi = + 1x+ 2X2 + u
Cubic model
Yi = + 1x+ 2X2 + 3X3 + u
Independent variable:
Time in years
Yi = + 1t + u
6
Scatter Plot
LINEAR MODEL
Linear Model
Model Summary
R
R Square
Adjusted R Square
.731
.534
The independent variable is GDP_PerCapita.
.531
ANOVA
Regression
Residual
Total
Sum of Squares
25760.161
df
1
Mean Square
25760.161
22462.030
128
175.485
48222.191
129
F
146.794
Sig.
.000
Unstandardized Coefficients
B
GDP_PerCapita
(Constant)
Std. Error
Beta
.004
.000
10.237
1.706
.731
t
12.116
6.001
Sig.
.000
.000
Quadratic Model
Quadratic model
Model Summary
R
R Square
Adjusted R Square
.750
.562
The independent variable is GDP_PerCapita.
.555
ANOVA
Regression
Residual
Total
Sum of Squares
27109.954
df
2
Mean Square
13554.977
21112.237
127
166.238
48222.191
129
F
81.540
Sig.
.000
GDP_PerCapita
GDP_PerCapita ** 2
(Constant)
Unstandardized Coefficients
B
Std. Error
.005
.001
-1.110E-7
.000
6.906
2.031
Standardized
Coefficients
Beta
1.059
-.369
t
8.189
-2.849
Sig.
.000
.005
3.400
.001
Cubic Model
Cubic Model
Model Summary
R
R Square
Adjusted R Square
.772
.596
The independent variable is GDP_PerCapita.
.586
ANOVA
Regression
Residual
Total
Sum of Squares
28733.766
Mean Square
9577.922
19488.425
126
154.670
48222.191
129
GDP_PerCapita
GDP_PerCapita ** 2
GDP_PerCapita ** 3
(Constant)
df
Sig.
.000
Coefficients
Unstandardized Coefficients
B
Std. Error
.010
.001
-7.181E-7
.000
1.903E-11
.000
1.757
F
61.925
2.522
Standardized
Coefficients
Beta
1.908
-2.386
1.331
t
6.577
-3.758
.
Sig.
.000
.000
.
.696
.487
Log-Linear Model
Log-Linear Model
Model Summary
R
R Square
Adjusted R Square
.789
.623
The independent variable is Log_GDP.
.620
ANOVA
Regression
Residual
Sum of Squares
102.665
Total
df
1
Mean Square
102.665
62.062
128
.485
164.728
129
F
211.742
Sig.
.000
Unstandardized Coefficients
B
Std. Error
Beta
Log_GDP
.849
.058
(Constant)
-3.884
.462
.789
t
14.551
-8.410
Sig.
.000
.000
R Square
.921
Adjusted R Square
.848
.835
ANOVA
Regression
Residual
Total
Sum of Squares
233.945
df
1
Mean Square
233.945
41.924
12
3.494
275.869
13
F
66.963
Sig.
.000
Coefficients
Unstandardized Coefficients
B
Case Sequence
(Constant)
Std. Error
Standardized
Coefficients
Beta
1.014
.124
-2.577
1.055
t
.921
Sig.
8.183
.000
-2.442
.031
R Square
.988
Adjusted R Square
.976
.974
ANOVA
Regression
Residual
Total
Sum of Squares
2.531
df
1
Mean Square
2.531
.062
12
.005
2.593
13
F
491.491
Sig.
.000
Coefficients
Case Sequence
(Constant)
Unstandardized Coefficients
B
Std. Error
.105
.005
-.277
.041
Standardized
Coefficients
Beta
.988
t
22.170
-6.849
Sig.
.000
.000
FINDINGS
Model
Alpha()
Beta1
Beta2
Beta3
10.237
.004
Comparison
of the models
(.000)
(.000)
Linear
R sq.
.534
Log-Linear
-3.884
(.000)
.849
(.000)
.623
Quadratic
6.906
(.001)
.005
(.000)
-1.11E^-7
(.005)
Cubic
1.757
(.487)
.010
(.000)
-7.181 E^-7
(.000)
Linear Trend
-2.577
(.031)
1.014
(.000)
.848
Semi-Log
India
-.277
(.000)
.105
(.000)
.976
.562
1.903E^-11 .596
(.000)
Conclusion
Cubic model has R2 value of 0.596 signifies correlation between the
variables. All the models depict that total variation in Internet density is
explained by GDP per capita for developing countries.
Inferring from by the cubic model, there is definite relationship between
GDP per capita and Internet density.
Hence we can reject our null hypothesis and accept the alternate
hypothesis that there is significant relationship between GDP per capita
and Internet density for developing countries.
Thank You!