Hi everyone,
I am doing a research on the impact of institutions income level. The proxy used for institutions is Rule of law estimates from the world bank. Income level is measured by gdp per capita (constant 2010 US$)
I was wondering how should I best interpret this coefficient because Rule of law is in the interval of -2.5 and 2.5? If I say " A unit increase in Control of corruption by 1 unit leads to an increase in income by 91 percent", wouldn't a 1 unit increase extreme in the variable is confined within an interval.
I am looking forward to your advice. Thank you in advance
Edited: This is an example that I practiced on which is from Rodrik et al. (2004)
I am doing a research on the impact of institutions income level. The proxy used for institutions is Rule of law estimates from the world bank. Income level is measured by gdp per capita (constant 2010 US$)
I was wondering how should I best interpret this coefficient because Rule of law is in the interval of -2.5 and 2.5? If I say " A unit increase in Control of corruption by 1 unit leads to an increase in income by 91 percent", wouldn't a 1 unit increase extreme in the variable is confined within an interval.
I am looking forward to your advice. Thank you in advance
Edited: This is an example that I practiced on which is from Rodrik et al. (2004)
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