When I check the VIF of my independent variables with the dependent variable, it looks normal and less than 5 but when I add the interaction variables, the VIF increase to 48 for some variables.
I read that centering or creating zscore (standardized values) for the variables are two of the solutions to the problem, but I can't seem to find any article that did that.
I am doing panel data analysis with fixed model. Four continuous independent variables are interacted with a continuous variable and also with a year dummy in another model
what should I do? thank you in advance