A Statistical Investigation of Variables on Government Economic Policy Choices, Business Environments and Prices (Published)
Does government economic policy choices have effects on businesses and/or prices? Do they relate in some way? This is the issue the paper seeks to address. We collected data on government economic policy choices, businesses environments and prices from countries in Africa, Asia, America and Europe. The data were subjected to statistical investigation by calculating six correlation coefficients for each continent, ascertaining which variables are correlated, and getting the levels of correlations. The results empirically show that in three continents, government economic policy choices do have effects on the business environment. The continents are Africa (correlation between Govt. Debt to GDP growth and Corruption Index is 0.504488), Asia (0.488973), and America (0.515489). They are all in the same range. The correlation coefficient for Europe is very low (0.016655).
Keywords: Inflation Rate, Variables, business confidence, correlation coefficient, corruption index