I am currently writing my masters thesis and have some difficulties with the statistical part of my research. I am new here, with limited knowledge in econometrics.
I want to analyse the relationship between two variables.
- R&D Expenses (in dollars, in a specific industry)
- Number of Employees (in a specific industry).
The data represents a specific industry in a certain country. I have values for both variables on each consecutive year (2000 till 2013).
IV: Innovation (R&D), DV= Number of employees
This is what I have in mind, and thus, I want to analyze the impact of innovation on the number of employees in the industry.
- I have limited amount of data, would these consecutive 14 years be enough data to statistically research this?
- Should I collect and use the accumulated values of a few countries for the analysis.
- Should I do the analysis a few times for different industries?
- How do I go about actually analyzing the relationship between the two, and more specifically the impact of innovation on number of employees? I am thinking of, what methods to use and what kind of tests to do?
I hope I was clear enough, please ask for further details. Thank you very much in advance!