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Lab 15B Explaining the Resource Curse Assignment In this lab, you will explore several explanations for the existence of the resource curse. The data for this lab is in an Excel spreadsheet and a Stata data set on the textbook web page. 1. Describe the variation in reliance on natural resources across countries. What is the minimum value of energy depletion (as a percent of national income)? What is the maximum value? Do countries that have higher values for energy depletion have above average incomes? Do your calculations provide evidence of a “resource curse”? Explain. 2. Create an overall index of resource reliance by adding together energy depletion, forest depletion, and mineral depletion (all measured as a percent of national income). How do you expect this index would be related to corruption control? Explain. Make a scatter plot that shows this relationship. Does it support your idea? 3. How would you expect the overall index you constructed in #2 to be related to investments in education? Make a scatter plot that shows the relationship between secondary school enrollment rates and this index. Does it support your ideas? Explain. 4. How would you expect the overall index you constructed in #2 to be related to investment? Make a scatter plot that shows the relationship between investment rates and this index. Does it support your ideas? Explain. 5. How would you expect the overall index you constructed in #2 to be related to the importance of industry in an economy? Make a scatter plot that shows the relationship between this index and the percent of GDP attributed to industry. Does it support your ideas? Explain. 6. Using the results from questions one through five above. Discuss possible reasons for the resource curse. Do your graphs provide evidence for any of these ideas? Discuss the policy implications of your findings.