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st: interactions and subsets

From   "Carlos Rodriguez" <>
Subject   st: interactions and subsets
Date   Mon, 28 Jul 2008 15:08:59 -0700

Dear all,

I am working with TSCS data in STATA8 and would appreciate some advice
on this issue.
I have run some regressions with an interaction between trade and a
dummy for late industrializers.  The interaction was not significant.
However, I reran the analysis dividing my dataset into two groups:
early industrializers and late industrialzers.  It turns out that
trade iIS significant in the set of late industrializers.  Why would
the interaction between trade and late industrializers in the whole
sample fail to achieve significance whereas trade comes up as highly
significant when the regression is run separtely on the group of
countries that are late indutrialers?  Can the difference be put down
to the dissimialr Ns? Moreover, which result shall I "believe"?

thanks for your advice.
Carlos Rodriguez
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