In: Statistics and Probability
how to interpret log-linear coefficient? Follow is the independent variables and their coefficient
Dependent variable: EXPORT
Constant= 11.96
Adoption rate=0.03
approval process=5.12
risk assessment=-3.6
labeling = -2.03
international agreement= 0.44
In case of log linear,
log( Dependent variable ) = constant + sum( beta_i*x_i )
to interpret in this case
log( EXPORT ) = 11.96 + 0.03*Adoption rate + 5.12*approval process - 3.6*risk assessment - 2.03*labeling + 0.44*international agreement
or, EXPORT = exp( 11.96 + 0.03*Adoption rate + 5.12*approval process - 3.6*risk assessment - 2.03*labeling + 0.44*international agreement )
higher the value of power of e more the value of export
higher the value 11.96 + 0.03*Adoption rate + 5.12*approval process - 3.6*risk assessment - 2.03*labeling + 0.44*international agreement more the export
or,
EXPORT is positively related to Adoption rate, more the Adoption rate more the export
EXPORT is positively related to approval process, more the value of approval process more the export
EXPORT is negatively related to risk assessment, lesser the risk assessment more the export
EXPORT is negatively related to labeling, lesser the labeling more the export
EXPORT is positively related to international agreement, more the international agreement more the export