This is a question that i have to answer but am having trouble understanding;
3. Assume that both Paraguay and Poland are unskilled-labour abundant countries. Based on your findings in Question 1, explain in up to 200~words whether your data agree or disagree with the Stolper-Samuelson theorem. (5 marks)
These are my findings from Q1;
Correlation Coefficient between openness and the GINI index
-Paraguay is -0.291865
-Poland is -0.60028
My questions are;
What effect does this have on the GINI index?
Do wages for unskilled fall or increase? skilled fall or increase?