I'm writing a thesis and encountered a problem. My dependent variable is GINI and my independent variables are logGDPPerCapita and Individualism. I write a paper about the interaction between GDP per capita and Individualism (GDP*individualism). My OLS Model is:Yi = β0 + β1X1i + β2X2i + β3X1iX2i + αXc + εi
Where: Yi = GINI coefficient X1i = GDP per capita X2i = individualism Xc = controls1 εi = error term How can my interaction term (GDP*individualism) be negative if my main effects (GDP&individualism) are both positive? If I correlate GINI versus individualism and GINI versus GDP, I both get a negative correlation while the regression gives a positive coefficient. What do I do wrong or how do I have to interpret this?
Any help would be appreciated.