I am looking at the effect of gender inequality (measured by GII which is a 0 to 1 scale, where higher values indicate greater inequality) on economic growth (measured by GDP per capita growth, as a %). As the two variables aren't measured in the same form I was wondering how I interpret the effect of GII on growth when looking at my coefficients, and also how to interpret the interaction term between GII and income (measured by natural log of GDP per capita) given I have interacted two variables measured differently?
Code:
xtreg Growth lagGII lagIncomeln GII_Income i.Year, fe robust Fixed-effects (within) regression Number of obs = 2,276 Group variable: CountryID Number of groups = 114 R-sq: Obs per group: within = 0.1394 min = 18 between = 0.0410 avg = 20.0 overall = 0.0255 max = 20 F(22,113) = 14.49 corr(u_i, Xb) = -0.9338 Prob > F = 0.0000 (Std. Err. adjusted for 114 clusters in CountryID) ------------------------------------------------------------------------------ | Robust Growth | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------- lagGII | -50.08883 12.19639 -4.11 0.000 -74.25208 -25.92559 lagIncomeln | -7.186864 1.354488 -5.31 0.000 -9.87035 -4.503379 GII_Income | 5.313213 1.206568 4.40 0.000 2.922784 7.703641 | Year | 1997 | -.3565464 .3871003 -0.92 0.359 -1.123462 .4103691 1998 | -.9939671 .4270054 -2.33 0.022 -1.839942 -.1479923 1999 | -.847875 .4163987 -2.04 0.044 -1.672836 -.022914 2000 | -.0046979 .4400977 -0.01 0.992 -.8766109 .8672151 2001 | -.9246834 .4146138 -2.23 0.028 -1.746108 -.1032587 2002 | -.5211 .4825815 -1.08 0.283 -1.477181 .4349809 2003 | .2614466 .4714257 0.55 0.580 -.6725327 1.195426 2004 | 1.514311 .45475 3.33 0.001 .6133698 2.415253 2005 | 1.131297 .4277166 2.64 0.009 .283913 1.97868 2006 | 2.066314 .4628423 4.46 0.000 1.14934 2.983288 2007 | 2.169376 .4984575 4.35 0.000 1.181842 3.156911 2008 | .4962147 .5488308 0.90 0.368 -.591118 1.583548 2009 | -2.813979 .4936407 -5.70 0.000 -3.79197 -1.835987 2010 | 1.726426 .4774053 3.62 0.000 .7805997 2.672252 2011 | 1.158964 .6006279 1.93 0.056 -.0309881 2.348916 2012 | .9286711 .5992796 1.55 0.124 -.2586098 2.115952 2013 | .7256153 .6654279 1.09 0.278 -.5927175 2.043948 2014 | 1.278339 .5844081 2.19 0.031 .1205209 2.436156 2015 | .8467109 .6811747 1.24 0.216 -.502819 2.196241 | _cons | 69.04605 12.6388 5.46 0.000 44.00631 94.08578 -------------+---------------------------------------------------------------- sigma_u | 5.5939725 sigma_e | 3.3023023 rho | .74156902 (fraction of variance due to u_i) ------------------------------------------------------------------------------
Many thanks,
Hellie
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