QUANTITATIVE ANALYSIS

Quantitative Analysis



Quantitative Analysis

Rationale of Research:

Asian Development Bank conducted surveys to analyze the economic indicators and its impact on the human development index. Basically, this information is gathered to assess the impact of economic changes on the employment level and poverty (Edmond, 2003). Multiple factors directly impact the economic growth and poverty conditions. Economic indicators effectiveness is assessed by analyzing the government financial strategies, trade accounts, changes in balance of payments, reserves level, exchange rates, and price indexes of commodities, labour force availability, production capacity, growth in industrial sector, agricultural growth in under-developed countries, and national accounts of GDP, GNP, and GNI (Zhuang, 2010).

It provides significant knowledge to an analyst to assess the significance of every component and sensitivity of relationship related to human development and changes in poverty level. Poverty is a major issue in many Asian countries which is a major cause of unstable situations in this region. Human development index provides significant information related to growth in economy and increased purchasing power of citizens. Poverty level and Human Development Index (HDI) is dependent on many factors which include government investment, enhancement in production possibility frontier, level of employment in an economy, population level, and price indexes of commodities (Harrigan, 1998). Therefore, it is necessary to determine the impact of each of the above stated factors while controlling the impact of other factors. Poverty and HDI depends on multiple factors which directly determine the level of these variables. Therefore, it is necessary to assess the independent impact of each isolated factors. The main purpose of this quantitative investigation is to determine to what extent each factor play its role in diminishing or increasing poverty; and how does increase in population is adjusted in Human Development Index (Triebold, 2007).

Hypothesis:

Null Hypothesis 1: Human Development Index is independent to Corruption level in economy

Hypothesis 1: Human Development Index is inversely proportional to Corruption level in economy

Null Hypothesis 2: Poverty level is independent to external debt, corruption index, and government expenditure.

Hypothesis 2: Poverty level is directly dependant on external debt, corruption index, and government expenditure.

Null Hypothesis 3: Human development index is positively related to increase in exports

Hypothesis 3: Human development index is positively related to increase in exports

Descriptive Statistics

Significant changes have been observed in the overall migration of people to urban regions in Asian countries. Average percentage of total population has shown a progressive shift towards movement in urban cities. As shown in table below mean value of 50.24% in Year 2008 has shown an inclination compare to percentage of total population in urban cities in Year 1990 which stood at 43.22%. This trend has been observed in all Asian countries included in the data list as the minimum percentage has also increased from 8.9% to 15.1%.

Descriptive Statistics

UrbPop_2008

UrbPop_1990

Mean

50.5240

43.2240

Median

43.1000

30.8000

Mode

100.00

26.00

Std. Deviation

26.59383

28.17208

Variance

707.232

793.666

Minimum

15.10

8.90

Maximum

100.00

100.00

Descriptive Statistics

IndEmploy07

IndEmploy95

Mean

18.1125

19.0826

Median

17.0000

17.9000

Mode

14.50

2.30

Std. Deviation

6.80609

9.59743

Variance

46.323

92.111

Minimum

8.70

2.30

Maximum

36.80

38.70

A drift has been observed in the industrial employment level in Asian countries. Mean percentage value has declined from 19% to 18% even after increase in industrial value ...