Help, please, I am lost ! I need so;e guidance.
I am doing mini-research. If you have some time, can you help me, please? Just some tips or whatever...
My topic is : Unemployment in relation with depopulation in Russia.
The main trend is : population decreases, unemployment increases.
The data is panel, collected by regions.
The equation is the following:
Y = C + α X + ß E + γ G + µ F + λ I + ε
Y - unemployment rate of each region (%) - dependent variable;
X - population growth rate of each region (%);
E - education (number of PhD students in every region);
G - GRP (GDP but regional);
F - investment in fixed assets by each federal district;
I - inflation rate in the country (%).
I run the equation in EViews and that what I got
Y = 15.176 + 0.535 X – 0.036 E – 0.0105 G + 1.08 e * F – 0.347 I + ε
So the influence of depopulation on unemployment is kinda 50%.
But it is a spurious relation.
What should I do after?
What test can I use?
Thank you for any help.
