Economics and Finance


Why the Top 5-6 Original Oil Richest Arab Countries as Well as Some Fast Moving Coginitive Skill Nations Should be Treated as Outliers in the Regression Analyses for the Relationships Between the Economic Growths Vs. the Cognitive Skills

Authors: Dongchan Lee

In this short paper, I demonstrated that why the top 5-6 original oil richest countries need to be excluded from most of the socio-economic vs. cognitive skill regressions because they will remain as outliers far too much out to the otherwise very reliable and stable regression growth coefficients and explanation powers of the models involved. I included some simple linear regression charts where they are far out in North West corners of the regression lines; their GDP per capita had reached the top tier of the world by the 70s already with the minimal cognitive skills and education inputs; I provided their relative economic strength compared to the economic miracle powers from the Eastern Asia: 4 Asian Tigers and China so that you can see their super rapid rises were all due to their oil-based economies; their top 6 shares of the Natural Resource rents as percent of capita over the past 40 years. I believe that these 4 key factors may allow anyone serious about any serious regressions that involve the socio-economic regressions to exclude these 5-6 countries in their analysis. Finally I made a brief comment about the polar opposite to these countries with the poor economy with the rapid gains of the cognitive skills.

Comments: 9 Pages. 1st draft

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Submission history

[v1] 2017-01-11 17:54:52

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