I want to examine whether the impact of laws on asset growth difference between developed and developing countries.
One way to do so is by adding the interaction between the variable of interest and a dummy variable representing for developed countries
Dependent_variables= pt + developed_dummy*pt + Independent_variables + fixed effects + error term
where developed_dummy equalling to 1 if this observation is in developed country. The purpose is to see whether the pt effect is stronger in the developed countries, is not it? And with the result below, how could I conclude? Can I compare the law effect between the developed and developing countries or Can I compare the law effect between the developed and the whole sample?
And what should I conclude if the coefficient of developedpt is significant?