I am writing a research project on the impact of freedom in countries on the handling of COVID-19, with respect to socio-economic development. I have created two indexes.
One to measure the change in socio-economic development: It is similar to that of the HDI (Human development index).
The other is a COVID index and includes the stringency index and new deaths per million.
For the index measuring the change in socio-economic development, I have included GDP per Capita, Unemployment Rate, Gini Index, Life Expectancy, Essential Services, and Quality of Education.
I have run regressions on the impact of freedom in countries on each of these variables independently and found that all of them, but the unemployment rate, are statistically significant. However, when I include the unemployment rate into the overall index, the index is statistically significant (both with the f-test and the p-values). I have also conducted OVB, multicollinearity, and heteroskedasticity tests and the model passes all of it.
How should I proceed?
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