The CPI is the Consumer Price Index, this index measures the evolution of the set of prices of goods and services consumed by the population of a country or region.
The CPI is a statistical estimate, that is, it is built with the prices of a sample of representative items whose prices are collected periodically.
The CPI allows us to know how much the price of the set of items that constitute family consumption has become more expensive (inflation) or cheaper. This study is carried out on a set of products (basket) related to food, transportation, education, clothing, etc.
The Gross Domestic Product (GDP) measures the monetary value of the production of final goods and services of a country during a year. GDP is also defined as the set of all final goods and services produced in a country during a year. GDP is commonly used as a measure of the degree of well-being of the population of a country. Another way to understand what GDP is is to look at its formula: GDP = C+I+G+X-M
Where: C = Consumption, I = Investment, G = Public spending, X = Exports, M = Imports
Public debt (or Sovereign Debt), that which the State has with its citizens or countries, has skyrocketed in recent times in a large number of countries and has become one of the main reasons for concern in some of the economies Most important in the world.
Public debt is the sum of the debts that a state has, and can be expressed as an amount or as a percentage of GDP, in which case it is expressed as:
Public Debt / GDP
And it is the amount that is owed over GDP, that is, the percentage of GDP that the country should spend to pay its debt.
There is a deficit when the difference between the income and the expenses of the State is negative, that is to say, the expenses are greater than the income. On the contrary, there is a Surplus when said difference is positive, that is, income exceeds expenses.
The interprofessional minimum wage or SMI sets the minimum remuneration amount, or the value of the minimum wage, that a worker must receive for the legal working day, regardless of the type of contract they have, in a given country. The updating of the minimum wage serves to counteract the rise in prices that occurs via inflation and in some cases, in addition to taking into account the CPI, other factors influence it, such as the national average productivity or the increase in labor participation in income. national.
It is the interest rate at which banks can borrow money from the central bank. It is used by central banks to guide monetary policy.
Every year the International Transparency Organization publishes the Corruption Perception Index (CPI).
A group of experts scores a large group of countries, using a scale from 0 (perception of high levels of corruption) to 100 (perception of very low levels of corruption) to obtain the ranking of countries based on the perception of corruption in the country. public sector.
Every year the World Economic Forum publishes the Global Competitiveness Index (Global Competitiveness), also called GCI.
This index measures how a country uses its available resources and its ability to provide its inhabitants with a high level of prosperity.
To classify countries according to their competitiveness, they analyze their economic prosperity through 12 variables:
Institutions infrastructures Macroeconomic environment Health and primary education Higher education and training Goods Market Efficiency Labor market efficiency Development of the financial market Technological readiness Size of the market Business sophistication Innovation. The lower the index, the better it will be located in the ranking.
Also called the transparency ranking, it measures the solidity of a country’s legal framework to guarantee the right to information. This ranking evaluates the legislative framework, not the correct application or not of the laws.
Its original name is the Global Right to Information Rating, and it is prepared by Access Info Europe and the Center for Law and Democracy.
Methodology
To carry out its calculation, 61 indicators are analyzed, which are awarded between 0 and two points and are grouped under various headings:
The maximum total rating that a country could have is 150 points.
Fiscal pressure, also called tax pressure, is the total taxes collected by the public sector of a country with respect to GDP. Therefore, it is expressed as tax revenue with respect to gross domestic product (GDP), that is, the percentage of GDP that citizens allocate to paying taxes.
In this case, the tax burden formula is calculated by dividing tax revenue by GDP:
PF= RF/GDP X 100 Where:
PF= Fiscal pressure RF= Tax collection = Tax revenue The fiscal pressure can also be expressed as the figure of income from taxes of the public sector, total or per inhabitant (Per capita).
Tax pressure Includes direct and indirect taxes paid by individuals and companies, that is, income taxes (IRPF), Companies, social contributions.
Normally the tax burden is higher in more developed countries.
Every year the World Bank publishes Doing Business, which is an index that measures the ease of doing business in the country.
The ease of doing business is obtained from the following ten points:
Opening a business Management of building permits Obtaining electricity property registry obtaining credit Investor Protection Tax payment Cross-border trade Contract compliance resolution of insolvency The higher the Doing Business index of a country, the more conducive is the regulation of said country for business activity.
Within our parameters we categorize countries into 3 classes
1- The first class called emerging are those countries whose aptitudes and conditions are good to make investments
2- The second called Horizon, are those countries whose future skills and conditions in the short term are established as good in the future.
3- Frontiers are those where the conditions are not the most optimal for investment
within these 3 categories a score is assigned, they are categorized with a scale of scales from 1 to 3 as follows
| Established | Future | border | Developed |
|---|---|---|---|
| 0 a 1 | 2 a 2.99 | 3 a 3.99 | 4 a 3.99 |
Results obtained after the execution of the mathematical model
| Category | Score | Country |
|---|---|---|
| Established | 0.38 | Republica Dominicana |
| Established | 0.95 | Colombia |
| Established | 1.24 | Uruguay |
| Established | 0.28 | Panama |
| Established | 1.81 | Argentina |
Although all the countries studied are within the category of “Emerging”, Argentina is very close to being categorized as Future.
Multiple linear regression allows you to generate a linear model in which the value of the dependent variable or response (Y ) is determined from a set of independent variables called predictors (X1, X2, X3…). It is an extension of simple linear regression, so it is essential to understand the latter. Multiple regression models can be used to predict the value of the dependent variable or to assess the influence that the predictors have on it (the latter must be carefully analyzed so as not to misinterpret cause-effect).
Multiple linear models follow the following equation: Yi(β0+β1X1i+β2X2i+⋯+βnXni)+ei
Call:
lm(formula = VARIABLES$Puntuacion ~ VARIABLES$Inflacion + VARIABLES$PBI +
VARIABLES$D_P_C + VARIABLES$`deficiPBI%` + VARIABLES$Sal_Minimo +
VARIABLES$`T_I_B_%` + VARIABLES$R_Corrup + VARIABLES$I_Comp_Mun +
VARIABLES$ind_transp + VARIABLES$`prefis%pbi` + VARIABLES$doingbusin)
Residuals:
1 2 3 4 5 6 7 8
0.198808 0.029387 0.046762 0.044842 -0.114638 0.263360 -0.271996 0.020210
9 10 11 12 13 14
0.072422 0.028293 -0.065120 -0.176780 -0.077976 0.002425
Coefficients:
Estimate Std. Error t value Pr(>|t|)
(Intercept) -1.276e+00 1.888e+00 -0.676 0.569
VARIABLES$Inflacion 3.114e-02 1.892e-02 1.646 0.242
VARIABLES$PBI -9.707e-06 1.014e-04 -0.096 0.932
VARIABLES$D_P_C -1.552e-04 1.262e-04 -1.230 0.344
VARIABLES$`deficiPBI%` 3.120e-02 5.579e-02 0.559 0.632
VARIABLES$Sal_Minimo 5.705e-03 3.932e-03 1.451 0.284
VARIABLES$`T_I_B_%` -4.312e-02 4.846e-02 -0.890 0.467
VARIABLES$R_Corrup 7.903e-03 6.840e-03 1.155 0.367
VARIABLES$I_Comp_Mun 6.395e-03 1.481e-02 0.432 0.708
VARIABLES$ind_transp -1.494e-03 7.976e-03 -0.187 0.869
VARIABLES$`prefis%pbi` 9.146e-02 5.994e-02 1.526 0.267
VARIABLES$doingbusin -1.145e-02 1.350e-02 -0.848 0.486
Residual standard error: 0.3529 on 2 degrees of freedom
Multiple R-squared: 0.9721, Adjusted R-squared: 0.8187
F-statistic: 6.335 on 11 and 2 DF, p-value: 0.1441Start: AIC=-32.41
VARIABLES$Puntuacion ~ VARIABLES$Inflacion + VARIABLES$PBI +
VARIABLES$D_P_C + VARIABLES$`deficiPBI%` + VARIABLES$Sal_Minimo +
VARIABLES$`T_I_B_%` + VARIABLES$R_Corrup + VARIABLES$I_Comp_Mun +
VARIABLES$ind_transp + VARIABLES$`prefis%pbi` + VARIABLES$doingbusin
Df Sum of Sq RSS AIC
- VARIABLES$PBI 1 0.00114 0.25024 -34.341
- VARIABLES$ind_transp 1 0.00437 0.25347 -34.162
- VARIABLES$I_Comp_Mun 1 0.02324 0.27234 -33.157
<none> 0.24910 -32.405
- VARIABLES$`deficiPBI%` 1 0.03897 0.28807 -32.371
- VARIABLES$doingbusin 1 0.08967 0.33877 -30.101
- VARIABLES$`T_I_B_%` 1 0.09864 0.34774 -29.735
- VARIABLES$R_Corrup 1 0.16629 0.41539 -27.246
- VARIABLES$D_P_C 1 0.18846 0.43756 -26.518
- VARIABLES$Sal_Minimo 1 0.26219 0.51129 -24.338
- VARIABLES$`prefis%pbi` 1 0.28998 0.53908 -23.597
- VARIABLES$Inflacion 1 0.33738 0.58648 -22.417
Step: AIC=-34.34
VARIABLES$Puntuacion ~ VARIABLES$Inflacion + VARIABLES$D_P_C +
VARIABLES$`deficiPBI%` + VARIABLES$Sal_Minimo + VARIABLES$`T_I_B_%` +
VARIABLES$R_Corrup + VARIABLES$I_Comp_Mun + VARIABLES$ind_transp +
VARIABLES$`prefis%pbi` + VARIABLES$doingbusin
Df Sum of Sq RSS AIC
- VARIABLES$ind_transp 1 0.00518 0.25542 -36.055
<none> 0.25024 -34.341
- VARIABLES$`deficiPBI%` 1 0.04558 0.29582 -33.999
- VARIABLES$I_Comp_Mun 1 0.05428 0.30452 -33.593
+ VARIABLES$PBI 1 0.00114 0.24910 -32.405
- VARIABLES$doingbusin 1 0.08854 0.33878 -32.101
- VARIABLES$`T_I_B_%` 1 0.09750 0.34774 -31.735
- VARIABLES$R_Corrup 1 0.16711 0.41735 -29.181
- VARIABLES$D_P_C 1 0.28760 0.53784 -25.629
- VARIABLES$`prefis%pbi` 1 0.29193 0.54217 -25.517
- VARIABLES$Sal_Minimo 1 0.30752 0.55776 -25.120
- VARIABLES$Inflacion 1 0.35812 0.60836 -23.905
Step: AIC=-36.05
VARIABLES$Puntuacion ~ VARIABLES$Inflacion + VARIABLES$D_P_C +
VARIABLES$`deficiPBI%` + VARIABLES$Sal_Minimo + VARIABLES$`T_I_B_%` +
VARIABLES$R_Corrup + VARIABLES$I_Comp_Mun + VARIABLES$`prefis%pbi` +
VARIABLES$doingbusin
Df Sum of Sq RSS AIC
<none> 0.25542 -36.055
- VARIABLES$`deficiPBI%` 1 0.04320 0.29862 -35.867
+ VARIABLES$ind_transp 1 0.00518 0.25024 -34.341
+ VARIABLES$PBI 1 0.00195 0.25347 -34.162
- VARIABLES$I_Comp_Mun 1 0.08427 0.33968 -34.063
- VARIABLES$doingbusin 1 0.08435 0.33976 -34.060
- VARIABLES$`T_I_B_%` 1 0.10891 0.36432 -33.083
- VARIABLES$R_Corrup 1 0.18889 0.44431 -30.304
- VARIABLES$`prefis%pbi` 1 0.28676 0.54217 -27.517
- VARIABLES$Sal_Minimo 1 0.31619 0.57161 -26.777
- VARIABLES$D_P_C 1 0.33481 0.59022 -26.328
- VARIABLES$Inflacion 1 0.35328 0.60870 -25.897
Call:
lm(formula = VARIABLES$Puntuacion ~ VARIABLES$Inflacion + VARIABLES$D_P_C +
VARIABLES$`deficiPBI%` + VARIABLES$Sal_Minimo + VARIABLES$`T_I_B_%` +
VARIABLES$R_Corrup + VARIABLES$I_Comp_Mun + VARIABLES$`prefis%pbi` +
VARIABLES$doingbusin)
Coefficients:
(Intercept) VARIABLES$Inflacion VARIABLES$D_P_C
-1.4658959 0.0300370 -0.0001677
VARIABLES$`deficiPBI%` VARIABLES$Sal_Minimo VARIABLES$`T_I_B_%`
0.0315983 0.0055967 -0.0443637
VARIABLES$R_Corrup VARIABLES$I_Comp_Mun VARIABLES$`prefis%pbi`
0.0071963 0.0082856 0.0901205
VARIABLES$doingbusin
-0.0109436 (Intercept) VARIABLES$Inflacion VARIABLES$PBI
-1.276490e+00 3.113615e-02 -9.707122e-06
VARIABLES$D_P_C VARIABLES$`deficiPBI%` VARIABLES$Sal_Minimo
-1.552169e-04 3.120353e-02 5.704764e-03
VARIABLES$`T_I_B_%` VARIABLES$R_Corrup VARIABLES$I_Comp_Mun
-4.312329e-02 7.903254e-03 6.395130e-03
VARIABLES$ind_transp VARIABLES$`prefis%pbi` VARIABLES$doingbusin
-1.493807e-03 9.146274e-02 -1.145129e-02
Call:
lm(formula = VARIABLES$Puntuacion ~ VARIABLES$Inflacion + VARIABLES$D_P_C +
VARIABLES$`deficiPBI%` + VARIABLES$Sal_Minimo + VARIABLES$`T_I_B_%` +
VARIABLES$R_Corrup + VARIABLES$I_Comp_Mun + VARIABLES$`prefis%pbi` +
VARIABLES$doingbusin)
Residuals:
1 2 3 4 5 6 7 8
0.220947 0.040322 0.032969 0.058804 -0.165072 0.248001 -0.249663 0.040116
9 10 11 12 13 14
0.076320 -0.002005 -0.039913 -0.182146 -0.084279 0.005600
Coefficients:
Estimate Std. Error t value Pr(>|t|)
(Intercept) -1.466e+00 1.182e+00 -1.240 0.2828
VARIABLES$Inflacion 3.004e-02 1.277e-02 2.352 0.0783 .
VARIABLES$D_P_C -1.677e-04 7.323e-05 -2.290 0.0839 .
VARIABLES$`deficiPBI%` 3.160e-02 3.842e-02 0.823 0.4570
VARIABLES$Sal_Minimo 5.597e-03 2.515e-03 2.225 0.0901 .
VARIABLES$`T_I_B_%` -4.436e-02 3.397e-02 -1.306 0.2616
VARIABLES$R_Corrup 7.196e-03 4.184e-03 1.720 0.1606
VARIABLES$I_Comp_Mun 8.286e-03 7.213e-03 1.149 0.3147
VARIABLES$`prefis%pbi` 9.012e-02 4.253e-02 2.119 0.1014
VARIABLES$doingbusin -1.094e-02 9.522e-03 -1.149 0.3145
---
Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
Residual standard error: 0.2527 on 4 degrees of freedom
Multiple R-squared: 0.9714, Adjusted R-squared: 0.907
F-statistic: 15.09 on 9 and 4 DF, p-value: 0.009469 (Intercept) VARIABLES$Inflacion VARIABLES$D_P_C
-1.4658958672 0.0300369829 -0.0001676946
VARIABLES$`deficiPBI%` VARIABLES$Sal_Minimo VARIABLES$`T_I_B_%`
0.0315982821 0.0055966842 -0.0443637372
VARIABLES$R_Corrup VARIABLES$I_Comp_Mun VARIABLES$`prefis%pbi`
0.0071962761 0.0082856214 0.0901204601
VARIABLES$doingbusin
-0.0109436496 [1] 0.3823989[1] 0.9567044[1] 1.248999[1] 0.2844059[1] 1.815146