what's the use of '% to gdp' type of variables? The Next CEO of Stack OverflowWhy does entitlements leads to lower US productivity?Equality, Taxes & Business GrowthRelationship between parameters estimates of continuous variables and dummy variablesCan I use calculated data for regressionTaking logarithms of variablesRegression with Dummy VariablesIndicator variables over unequal periods?Sustainable growth in the long runOn trade, What justificaion does the USA have to accuse China of 'selling too much not buying enough from USA'Debt-to-GDP ratio in connection to inflation
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what's the use of '% to gdp' type of variables?
The Next CEO of Stack OverflowWhy does entitlements leads to lower US productivity?Equality, Taxes & Business GrowthRelationship between parameters estimates of continuous variables and dummy variablesCan I use calculated data for regressionTaking logarithms of variablesRegression with Dummy VariablesIndicator variables over unequal periods?Sustainable growth in the long runOn trade, What justificaion does the USA have to accuse China of 'selling too much not buying enough from USA'Debt-to-GDP ratio in connection to inflation
$begingroup$
In my study I will look for the relationship between gini and trade, fdi and other variables however as I was regressing it.. the result turn out to be insignificant. My data that I used then were 'trade as a percentage to gdp' and 'fdi as a percentage to gdp'.
On the other hand when I regress it with just the total of trade and fdi.... it brings a somewhat significant result.
My Question really is... Can I drop the 'as a perentage of gdp'? and
just use the total trade and fdi without that? thank you. I hope you could help me.
plus I only have 16 years worth of data tho.
macroeconomics regression
asked 4 hours ago
ryleg96ryleg96
112
New contributor
ryleg96 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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add a comment |
$begingroup$
In my study I will look for the relationship between gini and trade, fdi and other variables however as I was regressing it.. the result turn out to be insignificant. My data that I used then were 'trade as a percentage to gdp' and 'fdi as a percentage to gdp'.
On the other hand when I regress it with just the total of trade and fdi.... it brings a somewhat significant result.
My Question really is... Can I drop the 'as a perentage of gdp'? and
just use the total trade and fdi without that? thank you. I hope you could help me.
plus I only have 16 years worth of data tho.
macroeconomics regression
asked 4 hours ago
ryleg96ryleg96
112
New contributor
ryleg96 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
$endgroup$
add a comment |
$begingroup$
In my study I will look for the relationship between gini and trade, fdi and other variables however as I was regressing it.. the result turn out to be insignificant. My data that I used then were 'trade as a percentage to gdp' and 'fdi as a percentage to gdp'.
On the other hand when I regress it with just the total of trade and fdi.... it brings a somewhat significant result.
My Question really is... Can I drop the 'as a perentage of gdp'? and
just use the total trade and fdi without that? thank you. I hope you could help me.
plus I only have 16 years worth of data tho.
macroeconomics regression
asked 4 hours ago
ryleg96ryleg96
112
New contributor
ryleg96 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
$endgroup$
In my study I will look for the relationship between gini and trade, fdi and other variables however as I was regressing it.. the result turn out to be insignificant. My data that I used then were 'trade as a percentage to gdp' and 'fdi as a percentage to gdp'.
On the other hand when I regress it with just the total of trade and fdi.... it brings a somewhat significant result.
My Question really is... Can I drop the 'as a perentage of gdp'? and
just use the total trade and fdi without that? thank you. I hope you could help me.
plus I only have 16 years worth of data tho.
macroeconomics regression
macroeconomics regression
asked 4 hours ago
ryleg96ryleg96
112
New contributor
ryleg96 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 4 hours ago
ryleg96ryleg96
112
New contributor
ryleg96 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 4 hours ago
ryleg96ryleg96
112
New contributor
ryleg96 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 4 hours ago
ryleg96ryleg96
112
asked 4 hours ago
ryleg96ryleg96
112
112
New contributor
ryleg96 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
ryleg96 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
ryleg96 is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
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2 Answers
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$begingroup$
Imagine that I am trying to determine whether eating corn has any effect on your height. I see that in the US, total corn consumption is 20 million tons per year (made up number, all others will be made up as well) and adding up the heights of the 300 million citizens we get 500 million meters. Similar statistics for France are 4 million tons per year and 100 million meters.
Total American corn consumption was higher, as well total American height.
Is this because corn has an effect on height? Or is it that both statistics are likely to be proportional to the size of the country (measured here by population)?
Depending on what your exact hypothesis is, you may want to filter out size effects by measuring these statistics of the national accounts as % of GDP.
answered 3 hours ago
GiskardGiskard
13.4k32248
$endgroup$
add a comment |
$begingroup$
Complementing @Giskard's answer, when you are using "trade as a perentage of gdp" or "FDI as a percentage of GPD", you are measuring the extent to which an economy is open to trade, or to inflows and outflows of international investment. Thus, "trade as a perentage of gdp" measures a country's trade openness, while increasing trade per se does not necessarily increase trade openness (for example a country may produce more and export more). Thus, the use of "trade" and "trade as a percentage of GDP" measures different economic phenomena.
answered 27 mins ago
emeryvilleemeryville
4,06711032
$endgroup$
add a comment |
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2 Answers
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2 Answers
2
active
oldest
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active
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$begingroup$
Imagine that I am trying to determine whether eating corn has any effect on your height. I see that in the US, total corn consumption is 20 million tons per year (made up number, all others will be made up as well) and adding up the heights of the 300 million citizens we get 500 million meters. Similar statistics for France are 4 million tons per year and 100 million meters.
Total American corn consumption was higher, as well total American height.
Is this because corn has an effect on height? Or is it that both statistics are likely to be proportional to the size of the country (measured here by population)?
Depending on what your exact hypothesis is, you may want to filter out size effects by measuring these statistics of the national accounts as % of GDP.
answered 3 hours ago
GiskardGiskard
13.4k32248
$endgroup$
add a comment |
$begingroup$
Imagine that I am trying to determine whether eating corn has any effect on your height. I see that in the US, total corn consumption is 20 million tons per year (made up number, all others will be made up as well) and adding up the heights of the 300 million citizens we get 500 million meters. Similar statistics for France are 4 million tons per year and 100 million meters.
Total American corn consumption was higher, as well total American height.
Is this because corn has an effect on height? Or is it that both statistics are likely to be proportional to the size of the country (measured here by population)?
Depending on what your exact hypothesis is, you may want to filter out size effects by measuring these statistics of the national accounts as % of GDP.
answered 3 hours ago
GiskardGiskard
13.4k32248
$endgroup$
add a comment |
$begingroup$
Imagine that I am trying to determine whether eating corn has any effect on your height. I see that in the US, total corn consumption is 20 million tons per year (made up number, all others will be made up as well) and adding up the heights of the 300 million citizens we get 500 million meters. Similar statistics for France are 4 million tons per year and 100 million meters.
Total American corn consumption was higher, as well total American height.
Is this because corn has an effect on height? Or is it that both statistics are likely to be proportional to the size of the country (measured here by population)?
Depending on what your exact hypothesis is, you may want to filter out size effects by measuring these statistics of the national accounts as % of GDP.
answered 3 hours ago
GiskardGiskard
13.4k32248
$endgroup$
Imagine that I am trying to determine whether eating corn has any effect on your height. I see that in the US, total corn consumption is 20 million tons per year (made up number, all others will be made up as well) and adding up the heights of the 300 million citizens we get 500 million meters. Similar statistics for France are 4 million tons per year and 100 million meters.
Total American corn consumption was higher, as well total American height.
Is this because corn has an effect on height? Or is it that both statistics are likely to be proportional to the size of the country (measured here by population)?
Depending on what your exact hypothesis is, you may want to filter out size effects by measuring these statistics of the national accounts as % of GDP.
answered 3 hours ago
GiskardGiskard
13.4k32248
answered 3 hours ago
GiskardGiskard
13.4k32248
answered 3 hours ago
GiskardGiskard
13.4k32248
answered 3 hours ago
GiskardGiskard
13.4k32248
13.4k32248
add a comment |
add a comment |
$begingroup$
Complementing @Giskard's answer, when you are using "trade as a perentage of gdp" or "FDI as a percentage of GPD", you are measuring the extent to which an economy is open to trade, or to inflows and outflows of international investment. Thus, "trade as a perentage of gdp" measures a country's trade openness, while increasing trade per se does not necessarily increase trade openness (for example a country may produce more and export more). Thus, the use of "trade" and "trade as a percentage of GDP" measures different economic phenomena.
answered 27 mins ago
emeryvilleemeryville
4,06711032
$endgroup$
add a comment |
$begingroup$
Complementing @Giskard's answer, when you are using "trade as a perentage of gdp" or "FDI as a percentage of GPD", you are measuring the extent to which an economy is open to trade, or to inflows and outflows of international investment. Thus, "trade as a perentage of gdp" measures a country's trade openness, while increasing trade per se does not necessarily increase trade openness (for example a country may produce more and export more). Thus, the use of "trade" and "trade as a percentage of GDP" measures different economic phenomena.
answered 27 mins ago
emeryvilleemeryville
4,06711032
$endgroup$
add a comment |
$begingroup$
Complementing @Giskard's answer, when you are using "trade as a perentage of gdp" or "FDI as a percentage of GPD", you are measuring the extent to which an economy is open to trade, or to inflows and outflows of international investment. Thus, "trade as a perentage of gdp" measures a country's trade openness, while increasing trade per se does not necessarily increase trade openness (for example a country may produce more and export more). Thus, the use of "trade" and "trade as a percentage of GDP" measures different economic phenomena.
answered 27 mins ago
emeryvilleemeryville
4,06711032
$endgroup$
Complementing @Giskard's answer, when you are using "trade as a perentage of gdp" or "FDI as a percentage of GPD", you are measuring the extent to which an economy is open to trade, or to inflows and outflows of international investment. Thus, "trade as a perentage of gdp" measures a country's trade openness, while increasing trade per se does not necessarily increase trade openness (for example a country may produce more and export more). Thus, the use of "trade" and "trade as a percentage of GDP" measures different economic phenomena.
answered 27 mins ago
emeryvilleemeryville
4,06711032
answered 27 mins ago
emeryvilleemeryville
4,06711032
answered 27 mins ago
emeryvilleemeryville
4,06711032
answered 27 mins ago
emeryvilleemeryville
4,06711032
4,06711032
add a comment |
add a comment |
ryleg96 is a new contributor. Be nice, and check out our Code of Conduct.
ryleg96 is a new contributor. Be nice, and check out our Code of Conduct.
ryleg96 is a new contributor. Be nice, and check out our Code of Conduct.
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