I am running a RE regression and I have export similarity index between two countries as the dependent variable and have a dummy variable such as share a border(=1 if countries share border, 0 otherwise). This is, of course, time invariant.
My question is: how do I interpret the coefficient of this dummy variable? For example, if the coefficient is 0.15, how would I interpret it? I have gone through multiple papers but failed to find the interpretation. Please help!
Help will be greatly appreciated!