I have a problem with the interpretation of my dependent variables. My dependent variable is GDP growth and my variable of interest is the change in human capital (HC). I regressed the following:
VARIABLES | GDP | GDP | GDP | GDP |
m2 | -1.112*** | -0.612 | 0.0418 | 0.391 |
(0.351) | (0.432) | (0.419) | (0.345) | |
conv2 | 1.263** | 1.238** | 1.263** | |
(0.562) | (0.556) | (0.573) | ||
c11 | -1.971*** | -1.198*** | ||
(0.234) | (0.223) | |||
HCchange | -70.29** | |||
(27.97) | ||||
xconst | 0.0597*** | |||
(0.0198) | ||||
RNNAchange | 74.24*** | |||
(4.804) | ||||
Constant | 3.163*** | 2.648*** | 2.627*** | 0.521 |
(0.305) | (0.434) | (0.429) | (0.487) | |
Observations | 1,528 | 1,491 | 1,491 | 1,349 |
Number of country1 | 37 | 36 | 36 | 33 |
I would say that a 1% change in HC leads to a 70% decrease in GDP growth. However, my teacher stated that when HC doubles, GDP decreases with 70%.
GDP is GDP growth per capita (annual %) and the variable HC is the % change per year. Does someone know the correct interpretation?
Thank you in advance for your comments!
Kind regards,
Jelle
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