Hello, I am wondering what is the correct way to interpret the beta coefficient of this regression model (file attached below). My interpretation is that for a one unit increase in the Gini Coefficient, GDP per Capita Growth increases by 81.6%. Is it correct?
Hello Kostas,
How to interpret what appears to be an unstandardized regression coefficient ("beta" usually implies the value for the standardized regression coefficient) depends on your chosen Type I error risk (alpha) level.
For the result you posted, the significance level (.08) would, for many people, be characterized as not statistically significant. If that's the case for you, then the correct interpretation is that you conclude that the regression coefficient for the IV is not distinguishable from zero.
If you do conclude that the result is significant (e.g., implying, perhaps an alpha level of .10), then the interpretation would be: for a unit increase in the IV, you would estimate scores on the DV to increase by 0.816 units, _not_ by 81.6%.
Good luck with your work.
Is your Independent variable Gini coefficient or differenced Gini coefficient? The comment of professor David Morse is exactly right. However, I prefer:
for a unit increase in the increment of the Gini coefficient, the logarithm of the increment of GDP increases by 0.816 units.
My answer is based on these two presumptions:
IV: differences Gini coefficient
DV: Logarithm of differences of GDP
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