Eco 208 Analysis
a) data from pwt 7.1
b) From the first graph, the US GDP per Capita is generally growing in the whole period, soaring from $13069 to $43511 with some tiny fluctuation in 1981 and 1991. The GDP per Capita of Canada and UK has a positive relationship with that of US, increasing dramaticly from year 1950 to 2007 and showing a slightly doward trend in 1981 and 1991. The growth of GDP per Capita of Canada is slowly compare with that of UK from 1950 to 1991, but Canada catched up with and surpass UK after that, resulting a similar increase from 1950 to 2007. The GDP per Capita in India is also increasing but the difference between that of America is still enormous and still aggrandizing. However, the percent increase of GDP in India is quite similar to the other three countries, showing that there is no significant difference in the increase between developed and developing countries.
c) The GDP per Worker of all those 4 countries increase across those 58 years, showing a procyclical relationship with GDP per Capita of them, appears in a higher level. That’s because the GDP per capita is divided by the total population but the GDP per worker is just divided by the working population. The GDP per Worker of Canada doesn’t increase that much from the given period compare with the other two developed countries. That of Canada is just slightly lower than that of US and far more than that of UK in the year 1950, but the number becomes lowest amont the three in the year 2007, slightly behind UK and far lower than US. The GDP per worker of India is just slight higher to the trend of the GDP per Capita, revealing a very surprising increase speed but still far behind those developing countries.
d) The investment to output ratio of those 4 countries are generally increasing through the 58 years, converging together and fluctuating around 19 in between 1959 and 1993. Comparing with the US curve, that of the other 3 countries fluctuate in the similar...