Economics Development: Poverty and GDP Download from the World Development Indicators database the following data: Poverty headcount ratio at $1.

Economics Development:Poverty and GDPDownload from the World Development Indicators database the following data:• Poverty headcount ratio at $1.25 a day (PPP) (% of population)• GDP per capita, PPP (current international $)For Sub-Saharan Africa, and Uganda, for the years between 1980 and 2010.1. For Sub-Saharan Africa, graph the evolution of the poverty headcount ratio, and GDP percapita over time.2. Is an increase in GDP per capita associated with a decrease in poverty?3. Now graph, in a scatter plot, the poverty headcount ratio as a function of GDP per capita(x-axis: GDP, y-axis: poverty). What do we see?4. To make it more visual, draw a linear trend (display the equation on the graph). What isthe relationship between poverty and GDP?5. Criticize this result (sample size, linear trend, sparsity of specification, omitted variablebias, reverse causality)6. If we nonetheless believe this result, let us look at the implications:a. Graph GDP over time, draw a linear trend, and display the equationb. If this were to continue, what would be the GDP in 2030?c. Considering the relationship between GDP and poverty, what would be thepoverty rate in 2030?d. Will there be significant progress on the poverty front, because of an increase inGDP? Conclude in terms of policy implications for poverty-oriented policies.7. Do the same for Uganda, and conclude for the case of Uganda

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