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Thread: linear regression - coefficients too high (data in % as an alternative?)

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    linear regression - coefficients too high (data in % as an alternative?)




    Hi everyone, I am new to statistics and I have to run 3 separate simple linear regressions (I averaged the data from 2003-2015 in order to run a single cross section - 54 observations):

    1. GDP (in million USD) (dep. variable) and Overseas Direct Investment Flows (in million USD) (Indep. Variable)
    2. Net Output of Manufacturing (in million USD) (dep. variable) and Overseas Direct Investment Flows (in million USD) (Indep. Variable)
    3. Exports of Goods and Services (in million USD) (dep. variable) and Overseas Direct Investment Flows (in million USD) (Indep. Variable)

    Although in all regressions the independent variable is significant, the coefficients are very high (see Picture 1) so there must be a problem. I have checked the data many times and it is correct. Alll the numbers of dependent variables are way higher numbers than the dependent variable. Is there an easy way for me to solve this issue?

    Alternatively, I have similar data in percentage and the regressions would look like this:

    1. GDP annual growth (in %) and Investments (million USD)
    2. manufacturing growth (in %) and Investments (million USD)
    3. exports (as a % of GDP) and Investments (million USD)

    Can I use such data in percentages or would the relevance of the regression be altered?
    Although in all regressions the independent variable is insignificant (which I guess is not ideal but it is still acceptable?), the coefficients seem normal to me. Is there a way around it to try and reach significance?

    Should I stick with the first or second option?

    Thank you in advance for your help!
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