Dear Stata users,
I have a question regarding the interpretation of my coefficients. I use an IV (TSLS) model to examine the total impact of FDI on income inequallity in Latin America, which is a sum of two coefficients . These are a coefficient including all countries (also Latin American countries) and a Latin American specific coefficient. Of these two coefficients, the global one is insignificant while the Latin American coefficient is significant. I used the command "test _b[FDI all countries] + _b[FDI in Latin America] = 0" to assess whether the sum of the two coefficients is significant. The p-value of this test is >0.10, thus I conclude that the sum (total impact) of FDI is insignificant.
Thus, FDI global (0.021) + FDI Latin America (-0.025***) = -0.004
Since the sum of the coefficients (the total impact of FDI in Latin America) is insignificant, do I have to conclude that FDI has no impact on income inequality in Latin America? Or can I conclude there is some significant relationship between FDI and income inequality in Latin America as the coefficient on specific Latin American countries is significant?
Hoping someone can help me out!
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