Hi,

I have a question about fixed effects panel data interaction terms:


Here is my code,

xtreg DepVAr c.IndependentVar#c.InteractionVar controls IndependentVar InteractionVar i.year , fe cluster(code)



My question is related to the coefficient values. So the value of my coefficient for interaction terms in 0.3 significant at P<0.05

The coefficient val of IndependentVar is 0.6 significant at P<0.05 and coeffcient of InteractionVar is insignificant.


Question is:

Is it okay sometimes to report that interaction term is useful even if it is smaller in value as depicted above? I know it can depend on research question econometric technique. But I am just asking whether in the research community, are these results just fine?

P.S. When I exclude interaction term, both my Independent and Interaction Vars become insignificant.