Dear,
I have a regression using a cross-sectional gravity model and as the dependent variable I have taken bilateral export flows which at the same time is a proxy variable for the exposure to risk from a policy. Initially, I estimated the model using the fixed effect method, but the coefficients of the independent variables turned out to be statistically insignificant. Then, I used remoteness indexes as an alternative approach. Surprisingly, the inclusion of these indexes yielded more meaningful results, indicating a correlation between bilateral export flows and the independent variables. However, when interpreting these coefficients in the context of exposure levels to the policy, the relationship becomes less intuitive. Do you have any idea how can I solve this issue? Let me know if any other detail needs to be provided in order to better understand the context.
Many thanks in advance!
I have a regression using a cross-sectional gravity model and as the dependent variable I have taken bilateral export flows which at the same time is a proxy variable for the exposure to risk from a policy. Initially, I estimated the model using the fixed effect method, but the coefficients of the independent variables turned out to be statistically insignificant. Then, I used remoteness indexes as an alternative approach. Surprisingly, the inclusion of these indexes yielded more meaningful results, indicating a correlation between bilateral export flows and the independent variables. However, when interpreting these coefficients in the context of exposure levels to the policy, the relationship becomes less intuitive. Do you have any idea how can I solve this issue? Let me know if any other detail needs to be provided in order to better understand the context.
Many thanks in advance!
