Using data that you obtained for Assignment 1 for Paraguay and Poland, calculate the correlation coefficient (using CORREL command in excel) between…
Poland: -0.60
Using a graph (from your lecture slides) for substitutable inputs case, explain in up to 200 words the Stolper-Samuelson theorem. (5 marks)Assume that both Paraguay and Poland are unskilled-labour abundant countries. Based on your findings in Question 1, explain in up to 200 words whether your data agree or disagree with the Stolper-Samuelson theorem.
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