DATA SCIENCE PROJECT INSTRUCTIONS

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Global Economic Environment (AF2602)

Data Science Project Instructions Instructions: Complete Sections 1-5 as stated in the Project Requirements. The full mark is 40. Type your assignment report in a MSWord document file. Your report should not exceed 5 pages (12pt. font; single line spacing; excluding the cover page, the reference page, and the Python codes appendix). Your tutor will not mark the part of your report beyond the page limit. The cover page of your assignment report should contain the following information:

DATA SCIENCE PROJECT REPORT Subject title and code: Global Economic Environment (AF2602) Student Name: Student ID: Student Email Address: Day and time of the tutorial: Tutor name:

Submit your project report via Turnitin to your tutor. The maximum acceptable similarity index is 20%. Your submission will be rejected if you submit to anywhere else. Submit your dataset by email to your tutor. Submission deadline: 13th November 2021 (Hong Kong Time 9:00PM). You can submit this project only once (i.e., re-submission is NOT allowed). This is an individual assessment. DO NOT consult your friends/classmates. Late submission will be subject to the following penalty: Mark deduction Late for 1 – 48 hours 10% of the original marks obtained Late for 49 – 96 hours 20% of the original marks obtained Late for 97 – 144 hours 30% of the original marks obtained Late for 145 – 168 hours 40% of the original marks obtained Late for 169 hours or more 100% of the original marks obtained

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Project Requirements Your project report should contain all the following six sections: Section 1. Choose ONE of the following series from WDI as the dependent variable:

• Exports of goods and services (BoP, current US$) • Exports of goods and services as a percentage of GDP • Imports of goods and services (BoP, current US$) • Imports of goods and services as a percentage of GDP • Foreign direct investment, net inflows (BoP, current US$) • Foreign direct investment, net inflows as a percentage of GDP • Foreign direct investment, net outflows (BoP, current US$) • Foreign direct investment, net outflows as a percentage of GDP • Current account balance (BoP, current US$) • Current account balance as a percentage of GDP

Section 2. Choose ANY FOUR series from WDI as independent variables. Section 3. Collect the data on the dependent and independent variables of at least 15 countries over a sample period of 10 years. The sample size should be at least 100 country-year observations. In a table, provide a list of the sample countries, the sample period, the sample size, the sample mean, and the sample standard deviation. (3 marks) Section 4. Set a hypothesis for the effect of each independent variable on the dependent variable (i.e., a total of four hypotheses). Explanations / Theories / Intuitions should be provided to justify each hypothesis. Sources of references should be cited. (20 marks) Section 5. Using the data collected, estimate a fixed-effect model by a Python program. Report the main findings in a table. Provide the Python program in an appendix. (5 marks) Section 6. Based on the findings, test for the hypotheses one by one. For each hypothesis, intuitively explain why it is / is not supported by the findings. (12 marks)