Hi everyone,
I am doing a research on the impact of corruption income level. The proxy used for corruption is Control of corruption estimates from the world bank. Income level is measured by gdp per capita (constant 2010 US$)
Suppose a simple model: log (gdp per capita)= alpha + beta_ corruption +u; and beta = 0.418; the variable is significant at 1 percent significant level.
I was wondering how should I best interpret this coefficient because Control of corruption is in the interval of -2.5 and 2.5? If I say " A unit increase in Control of corruption by 1 unit leads to an increase in income by 41.8 percent", wouldn't a 1 unit increase extreme in the variable is confined within an interval.
I am looking forward to your advice. Thank you in advance
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