Research Project on Regression and Discriminant Analysis

7/30/2019 Research Project on Regression and Discriminant Analysis

1/25

1

Table of Contents1.0 Introduction ............................................................................................................................................. 2

1.1 Background to the problem ................................................................................................................... 22

1.2Statement of the problem .........................................................................................................................3

2.0Approach to the problem..........................................................................................................................3

3.0 Research design......................................................................................................................................4

3.1 Types of research design and Information needed ................................ Error! Bookmark not defined.

3.2 Data collection ........................................................................................................................................ 4

3.3 Questionnaire development and scaling technique ................................................................................. 4

3.4 Sampling technique ................................................................................................................................. 5

3.5 Field work ............................................................................................................................................... 54.0 Data analysis ........................................................................................................................................... 5

5.0 Results ..................................................................................................................................................... 6

6.0 Limitations and caveats ........................................................................................................................... 7

7.0 Conclusion and recommendation ............................................................................................................ 8

8.0 Exhibits ................................................................................................................................................... 8

8.1 Questionnaire and form ........................................................................................................................... 8

8.2 Statistical outputs .................................................................................................................................. 11


2/25

2

1.0 Introduction

Economic supremacy is the foremost feature of the current world. In order to survive,

Bangladesh has no other options but to attain economic development. Foreign Direct Investment

(FDI) is recognized as a key component for economic growth for Bangladesh.

Being one of the Least Developed Countries (LDC) with insufficient domestic savings rate for

investment after fulfilling its basic needs, the importance of foreign investment is

unquestionable. Foreign Direct Investment (FDI) will create employment, increase efficiency of

labor, encourage technology transfer and develop new exportable sector. To attract more and

more FDI the government of Bangladesh has been trying to establish private investment friendly

environment. A number of opportunities have been given by the Government of Bangladesh

(GOB) to attract foreign investors to invest in the country in some prospective sectors.

Sponsoring agencies responsible for private sector industrial development are Board of

Investment (BOI), Bangladesh Export Processing Zones Authority (BEPZA), Bangladesh Smalland Cottage Industries Corporation (BSCIC), Financing Institutions (FI) and Commercial Banks

(CB) including Development Financing Institutions (DFI) and Nationalized Commercial Banks

(NCB) etc.

In late 70s when individual ownership economy revived in our country, EPZ was created to

attract capital investment, employment generation and rapid industrialization. As a matter of fact,

the main objective of setting up EPZ is to create individual industrial entrepreneurs and thereby

to achieve the other objectives. The economy of Bangladesh is basically agro-based. The

habitants of agro-based economy are generally remains habituated in a risk less life. In other

way, business investment particularly industrial investment brings solvency and dynamism inhuman life but it is risky and hazardous. Therefore, to create industrial entrepreneurs some

institutional support must be extended to the individual businessmen. EPZ ensures this

institutional support to the potential business entrepreneurs in Bangladesh.

1.1 Background to the problem

In late 70s when individual ownership economy revived in our country, EPZ was created to attract

capital investment, employment generation and rapid industrialization. As a matter of fact, the main

objective of setting up EPZ is to create individual industrial entrepreneurs and thereby to achieve the

other objectives.

In order to stimulate rapid economic growth of the country, particularly through industrialization,

the government has adopted an 'Open Door Policy' to attract foreign investment to Bangladesh.

The Bangladesh Export Processing Zones Authority (BEPZA) is the official organ of the

government to promote, attract and facilitate foreign investment in the Export Processing Zones.


3/25

3

The primary objectives of an EPZ are to provide special areas where potential investors would

find a congenial investment climate, free from cumbersome procedures. But from current

scenario, there are some potential problems which hinder foreign investments in EPZs and flow

of FDI here is not as per initial expectation.

1.2Statement of the problem

As we discuss in background that FDI flow in EPZs of BEPZA could not meet as they expected.

There for we are looking at the problem like Should BEPZA provide more institutional

support to promote, attract and facilitate FDI?

2.0

Approach to the problem

The research was conducted after conversation with the experts (especially with those associated

with investment promotion and engineering department) of BEPZA. Some FDI related

magazines and articles were also analyzed for depth knowledge and views about the problem.

The independent variables associated with the problem analyzed like solving problems, provision

of incentives, the behavior of employees, safe environment for investments , labor issues, protective

measures , physical facilities and infrastructures of BEPZA, Governance systems, prompt service were

considered.

Variables for Study

Dependent Variable

Foreign Direct Investments (FDI) attracted by BEPZA

Independent Variables

Solving problems

Provision of incentives


4/25

4

The behavior of employees

Safe Environment for investments

Labor issues

Protective measures

Physical facilities and infrastructures of BEPZA

Governance systems

Prompt service

3.0 Research design

3.1 Types of research design and Information needed

Basically descriptive research design is used here. Survey method is used here to collect the data.

Personal interview technique has been used to conduct the survey. Information on Solving

problems, Provision of incentives , The behavior of employees , Safe Environment for investments ,

Labor issues, Protective measures , Physical facilities and infrastructures of BEPZA, Governance

systems, Prompt service were required for this research.

3.2 Data collection

Primary data was collected from BEPZA Complex, Dhanmondi, Dhaka and Adamjee EPZ, Shiddhirgonj,

Narayanganj. To get quantitative data directly from investors with a view to measure their level

of satisfaction, interview was taken on 30 (thirty) local and foreign key personnel from different

industries at Adamjee EPZ who have different investment profile & who lie in different age group. Thesecondary data was collected from published literatures, journals, company reports, websites, etc.


5/25

5

3.3 Questionnaire development and scaling technique

A preliminary questionnaire is developed by using Likert scales. The independent and

dependent variables were identified and there was one question for each of the variables. The

questionnaire was pre-tested several times to eliminate problem about appropriate wording,

format, length and sequence of the questions. After fixing the questions for the independent and

dependent variables based on the type of questions different values were assigned to the Likert

scale. For a positive statement highest number (9) was assigned for extremely agree and lowest

number (1) for extremely disagree responses. For a negative statement highest number (9) was

assigned for extremely disagree and lowest number (1) for extremely agree responses.

3.4 Sampling technique

I have applied Convenience and Judgmental sampling technique here. In this form of sampling,

respondents were selected because they happen to be in the right place at the right time. It was

the least expensive and least time consuming of all sampling techniques at this case the sampling

units were accessible, easy to measure and cooperative. Again time and budget constraints

were another issue why the sample size was small.

3.5 Field work

Data from all of these 30 respondents were collected from Adamjee EPZ, Shiddhirganj,

Narayanganj. Data has been collected by interviewing respondents from different profession and

area.

4.0 Data analysis

I have used SPSS version 16 (for windows) for analyzing the survey data. Basically all the

variables were properly inputted & scaled at SPSS to get Regression and Discriminant outputs.


6/25

6

For Study, Regression analyses have been applied to identify & investigate affect of independent

variables on dependent variable.

5.0 Results

Multiple Regression Analysis

From Model Summary the value of R is 0.638 along with positive sign indicating there is a

strong relationship between dependent variable (BEPZA attracts Foreign Direct Investment

(FDI) smoothly) and independent variable (When Investors have a problem BEPZA shows a

sincere interest in solving it, BEPZA provides incentives for attracting foreign investments at the

time it promises to do so, The behavior of employees in BEPZA instills confidence in you, You

feel safe in your investments in EPZs of BEPZA, The IR section and counselors of EPZs in

BEPZA are not capable in handling labor issues, Protective measures taken by BEPZA are

needed to be improved, BEPZAs physical facilities and infrastructures are not visually

appealing for investment, Governance system of EPZs in BEPZA is to be modified to

international standard and Employees in BEPZA give you prompt service) considered in this

model.

The value of R2

is 0.466; we can say that 46.6 percent of variation is dependent variable

accounted for independent variables.

Discriminant Analysis

From Tests of Equality of group means it is seen that for degree of freedom between 2 and 27,

Safe Environment of Investment is the most significant beyond the 0.05 level.

Here, Eigenvalue associated with the first function is 0.841 and the function accounts for

84.80% of the explained variance. Since eigenvalue large, this function seems to be superior.

The second function has small eigenvalue of 0.150 accounts for only 15.2% of the explained

variance.


7/25

7

Wilks for first function is smaller (0.472) which is closed to zero (0) as compared to second

function (0.869) indicating that the group means seems to be different for first function.

Standardized Canonical Discriminant Function Coefficients indicates that for first function

relatively larger coefficients for the Behavior of Employee, Safe Environment of Investment,

Labor Issues, Governance system of EPZs in BEPZA and for second function relatively larger

coefficients for Protective Measures, Safe Environment of Investment, Solving Problem and

Governance System of EPZs in BEPZA. One unit increase of independent variable associated

with this coefficient will increase the value of discriminant score to the same amount.

Structure Matrix indicates that variables with large coefficients for a particular function are

grouped together. These groupings are shown with asterisks. For first function, Safe

Environment of Investment, Behavior of Employees, BEPZAs physical facilities and

infrastructures, Labor Issues and Provision of Incentives have asterisks. For second function, t,

Protective Measures, Solving Problem, Prompt Service of Employees and Governance System of

EPZs in BEPZA have asterisks.

The Centroid is the mean values for the discriminant scores for particular group. These values

used in calculating cutting scores.

From Classification Results, 50% of original cases and 30% of cross validated grouped cases

correctly classified.

6.0 Limitations and caveats

I have faced some problems while conducting the study.

I had limited access to the related literature review due to lack of journals and relatedmaterials

I could not test reliability and validity of the questionnaire due to lack of time. No expert analyst was used for the analysis. So, the analysis may contain some errors. Sample collected may not be representative.


8/25

8

7.0 Conclusion and recommendation

BEPZA play an important role in our economy. It also promised to provide enough support to

promote, attract and facilitate FDI in Bangladesh. According to above study, BEPZA should look

into the factors that attract foreign entrepreneurs and investigate them properly. Factors include

Solving problems, Provision of incentives, Behavior of employees, Safe Environment for

investments, Labor issues, Protective measures, Physical facilities and infrastructures of BEPZA,

Governance systems, Prompt service.

So BEPZA should provide all of the above facilities and support to attract FDI. Investigation of

above factors may provide insights of the problem and help decision makers to make the right

decision.

From the study BEPZA may take further step to attract FDI.

8.0 Exhibits

8.1 Questionnaire and form

Different questionnaire and options are listed below about BEPZA. Please rate how strongly you

agree or disagree with each of the following statements by placing a check mark.

Questionnaire

Name: Age:

Profession:

Different questionnaire and options are listed below about performance of BEPZA. Please rate how

strongly you agree or disagree with each of the following statements by placing a check mark.


9/25

9

1. BEPZA attracts Foreign Direct Investment (FDI) smoothly.Extremely

agree

Strongly

agree

Agree Somewhat

agree

Neither

agree

nor

disagree

Disagree Somewhat

disagree

Strongly

disagree

Extremely

disagree

9 8 7 6 5 4 3 2 1

2. When Investors have a problem, BEPZA shows a sincere interest in solving it.Extremely

agree

Strongly

agree

Agree Somewhat

agree

Neither

agree

nor

disagree

Disagree Somewhat

disagree

Strongly

disagree

Extremely

disagree

9 8 7 6 5 4 3 2 1

3. BEPZA provides incentives for attracting foreign investments at the time it promises to do so.Extremely

agree

Strongly

agree

Agree Somewhat

agree

Neither

agree

nordisagree

Disagree Somewhat

disagree

Strongly

disagree

Extremely

disagree

9 8 7 6 5 4 3 2 1

4. The behavior of employees in BEPZA instills confidence in you.Extremely

agree

Strongly

agree

Agree Somewhat

agree

Neither

agreenor

disagree

Disagree Somewhat

disagree

Strongly

disagree

Extremely

disagree

9 8 7 6 5 4 3 2 1


10/25

10

5. You feel safe in your investments in EPZs of BEPZA.Extremely

agree

Strongly

agree

Agree Somewhat

agree

Neither

agree

nor

disagree

Disagree Somewhat

disagree

Strongly

disagree

Extremely

disagree

9 8 7 6 5 4 3 2 1

6. The IR section and counselors of EPZs in BEPZA are not capable in handling labor issues.Extremely

agree

Strongly

agree

Agree Somewhat

agree

Neither

agree

nor

disagree

Disagree Somewhat

disagree

Strongly

disagree

Extremely

disagree

1 2 3 4 5 6 7 8 9

7. Protective measures taken by BEPZA are needed to be improved.Extremely

agree

Strongly

agree

Agree Somewhat

agree

Neither

agree

nor

disagree

Disagree Somewhat

disagree

Strongly

disagree

Extremely

disagree

9 8 7 6 5 4 3 2 1

8. BEPZAs physical facilities and infrastructures are not visually appealing for investment.


11/25

11

Extremely

agree

Strongly

agree

Agree Somewhat

agree

Neither

agree

nor

disagree

Disagree Somewhat

disagree

Strongly

disagree

Extremely

disagree

1 2 3 4 5 6 7 8 9

9. Governance system of EPZs in BEPZA is to be modified to international standard.Extremely

agree

Strongly

agree

Agree Somewhat

agree

Neither

agree

nor

disagree

Disagree Somewhat

disagree

Strongly

disagree

Extremely

disagree

9 8 7 6 5 4 3 2 1

10.Employees in BEPZA give you prompt service.Extremely

agree

Strongly

agree

Agree Somewhat

agree

Neither

agree

nor

disagree

Disagree Somewhat

disagree

Strongly

disagree

Extremely

disagree

9 8 7 6 5 4 3 2 1

8.2 Statistical outputs

Multiple Regression Analysis

Model Summaryb

Model R R Square Adjusted R Square

Std. Error of the

Estimate

1 .683a .466 .226 2.287


12/25

12

a. Predictors: (Constant), Employees of BEPZA give prompt service, When Investors

have a problem BEPZA shows sincere interest in solving it, Protective measures taken

by BEPZA needed to be improved, Investors feel safe investing in EPZ's of BEPZA,

BEPZA provides incentives for attracting foreign investment at the time it promises,

The IR section and counselors are not capable in handling labor issue, Governancesystem of EPZ's in BEPZA needed to be modified to international standard, BEPZA's

physical facilities and infrastructures are not visually appealing, The behavior of

employees of BEPZA instills confidence in Investors

b. Dependent Variable: BEPZA attracts FDI smoothly

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 91.257 9 10.140 1.939 .104a

Residual 104.610 20 5.230

Total 195.867 29

a. Predictors: (Constant), Employees of BEPZA give promt service, When Investors have a problem BEPZA shows

sincere interest in solving it, Protective measures taken by BEPZA needed to be improved, Investors feel safe investing

in EPZ's of BEPZA, BEPZA provides incentives for attracting foreign investment at the time it promises, The IR

section and counselors are not capable in handling labor issue, Governance system of EPZ's in BEPZA needed to be

modified to international standard, BEPZA's physical facilities and infrastructures are not visually appealing, The

behaviour of employees of BEPZA instills confidence in Investors

b. Dependent Variable: BEPZA attracts FDI smoothly

Coefficientsa


13/25

13

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) 6.821 3.180 2.145 .04

When Investors have a problem

BEPZA shows sincere interest in

solving it

.137 .195 .135 .706 .48

BEPZA provides incentives for

attracting foreign investment at the

time it promises

.045 .225 .043 .201 .84

The behaviour of employees of

BEPZA instills confidence in

Investors

-.419 .221 -.415 -1.898 .07

Investors feel safe investing in

EPZ's of BEPZA-.276 .206 -.247 -1.341 .19

The IR section and counselors are

not capable in handling labor issue-.328 .210 -.320 -1.560 .13

Protective measures taken by

BEPZA needed to be improved.306 .216 .267 1.415 .17

BEPZA's physical facilities and

infrastructures are not visually

appealing

.014 .239 .012 .057 .95

Governance system of EPZ's in

BEPZA needed to be modified to

international standard

-.060 .212 -.057 -.284 .77

Employees of BEPZA give prompt

service.175 .207 .165 .844 .40

a. Dependent Variable: BEPZA attracts FDI smoothly


14/25

14

Residuals Statisticsa

Minimum Maximum Mean Std. Deviation N

Predicted Value 2.02 9.63 5.07 1.774 30

Residual -4.101 4.213 .000 1.899 30

Std. Predicted Value -1.718 2.572 .000 1.000 30

Std. Residual -1.793 1.842 .000 .830 30

a. Dependent Variable: BEPZA attracts FDI smoothly

Charts


15/25

15


16/25

16


17/25

17

Results of Three-Group Discriminant Analysis

Group Statistics

New FDI Mean Std. Deviation

Valid N (listwise)

Unweighted Weighted

1 Solving Problem 4.50 2.369 10 10.000

Provision of Incentives 4.80 3.190 10 10.000

The behavior of employees 6.30 3.234 10 10.000

Safe Environment of Investments 6.50 2.068 10 10.000

Labor Issues 5.60 2.989 10 10.000

Protective Measures 5.00 2.108 10 10.000

BEPZA's physical facilities andinfrastructures

6.20 2.440 10 10.000

Governance system of EPZ's inBEPZA

4.50 2.461 10 10.000

Prompt Service by Employees 4.70 3.020 10 10.000

2 Solving Problem 5.00 2.749 10 10.000




Labor Issues 4.70 2.111 10 10.000



4.90 2.424 10 10.000


4.60 2.757 10 10.000


18/25

18


3 Solving Problem 6.40 2.366 10 10.000




Labor Issues 4.20 2.486 10 10.000



5.00 2.211 10 10.000


BEPZA4.80 2.394 10 10.000


Total Solving Problem 5.30 2.548 30 30.000




Labor Issues 4.83 2.534 30 30.000



5.37 2.356 30 30.000


4.63 2.456 30 30.000


Tests of Equality of Group Means

Wilks' Lambda F df1 df2 Sig.


19/25

19

Solving Problem .897 1.551 2 27 .230

Provision of Incentives .968 .446 2 27 .645

The behavior of employees .847 2.441 2 27 .106

Safe Environment of Investments .721 5.233 2 27 .012

Labor Issues .946 .772 2 27 .472

Protective Measures .927 1.055 2 27 .362


infrastructures.935 .939 2 27 .403


BEPZA.997 .036 2 27 .965

Prompt Service by Employees .985 .205 2 27 .816


20/25

20

Pooled Within-Groups Matrices

Solving

Problem

Provision of

Incentives

The behavior

of employees

Safe Environment

of Investments

Labor

Issues

Protective

Measures

BEPZA's physicalfacilities and

infrastructures

Governancesystem of EPZ's in

BEPZA

Prompt Service

by Employees

Correlation Solving Problem 1.000 -.149 -.019 -.064 -.347 .043 .082 .124 -.036

Provision of

Incentives-.149 1.000 -.502 -.077 .286 -.215 -.119 .360 -.206

The behavior of

employees-.019 -.502 1.000 .134 -.214 .190 .052 -.306 .393

Safe Environment of

Investments-.064 -.077 .134 1.000 -.048 .154 .175 -.236 -.098

Labor Issues -.347 .286 -.214 -.048 1.000 .166 .292 -.022 -.091

Protective Measures .043 -.215 .190 .154 .166 1.000 .337 -.366 -.102

BEPZA's physical

facilities and

infrastructures

.082 -.119 .052 .175 .292 .337 1.000 .072 -.324

Governance system of

EPZ's in BEPZA.124 .360 -.306 -.236 -.022 -.366 .072 1.000 -.105

Prompt Service byEmployees

-.036 -.206 .393 -.098 -.091 -.102 -.324 -.105 1.000


21/25

21

Analysis 1

Summary of Canonical Discriminant Functions

Eigenvalues

Function Eigenvalue % of Variance Cumulative %

Canonical

Correlation

1 .841a 84.8 84.8 .676

2 .150a 15.2 100.0 .361

a. First 2 canonical discriminant functions were used in the analysis.

Wilks' Lambda

Test of

Function(s) Wilks' Lambda Chi-square df Sig.

1 through 2 .472 17.262 18 .505

2 .869 3.220 8 .920


22/25

22

Standardized Canonical Discriminant Function Coefficients

Function

1 2

Solving Problem -.148 .419

Provision of Incentives -.223 -.067

The behavior of employees .620 -.206

Safe Environment of Investments .635 .632

Labor Issues .484 .038

Protective Measures -.470 .717


infrastructures.028 -.230


BEPZA.195 .387

Prompt Service by Employees -.277 -.085

Structure Matrix


23/25

23

Function

1 2

Safe Environment of Investments .635* .568

The behavior of employees .460* -.132


infrastructures.272* .220

Labor Issues .259* -.062

Provision of Incentives -.198* -.033

Protective Measures -.167 .604*

Solving Problem -.319 .442*

Prompt Service by Employees -.070 -.272*


BEPZA-.051 .058*

Pooled within-groups correlations between discriminating

variables and standardized canonical discriminant functions

Variables ordered by absolute size of correlation within function.

*. Largest absolute correlation between each variable and any

discriminant function

Functions at Group Centroids

New FDI Function


24/25

24

1 2

1 1.189 .134

2 -.321 -.502

3 -.869 .368

Unstandardized canonical discriminant

functions evaluated at group means

Classification Statistics

Prior Probabilities for Groups

New FDI Prior

Cases Used in Analysis

Unweighted Weighted

1 .333 10 10.000

2 .333 10 10.000

3 .333 10 10.000

Total 1.000 30 30.000

Classification Resultsb,c

New FDI

Predicted Group Membership

Total1 2 3


25/25

25

Original Count 1 7 2 1 10

2 3 4 3 10

3 1 5 4 10

% 1 70.0 20.0 10.0 100.0

2 30.0 40.0 30.0 100.0

3 10.0 50.0 40.0 100.0

Cross-validateda Count 1 5 2 3 10

2 3 1 6 10

3 3 4 3 10

% 1 50.0 20.0 30.0 100.0

2 30.0 10.0 60.0 100.0

3 30.0 40.0 30.0 100.0

a. Cross validation is done only for those cases in the analysis. In cross validation, each case is classified bythe functions derived from all cases other than that case.

b. 50.0% of original grouped cases correctly classified.

c. 30.0% of cross-validated grouped cases correctly classified.

Bibliography

1. Malhothra. Naresh K., 2008, Advanced Marketing Research, 6th Edition.

2. www.epzbangladesh.org.bd.

Date post:	04-Apr-2018
Category:	Documents
Upload:	md-abdur-rahman-bhuiyan
View:	220 times
Download:	0 times

Research Project on Regression and Discriminant Analysis

Documents