How to correlate inflation and employment?

[Charles King]

Hi I'm working on my thesis and I'm using inflation and its effects on MSMEs. I have a small sample size of only 6 years (2011-2016) and I have data of inflation per year and employment generated by MSMEs per year. At this point I'm stuck with only the information, how do I correlate these two and make a conclusion about their relationship (if any)? Thanks!

-Charles

[Marcos Almeida]

Perhaps you should discuss and develop the study design with your professor/ supervisor before going further with the analysis. That said, there is a whole machinery related to longitudinal studies, including autoregressive models (when T > N), but I recommend the - xtreg - command as a sound starting point.