Testing for multicollinearity in multi regression model:

Givenen the model:

Log(Foreign Direct Investment Inflows)= b0 x b1.Exports of goods and services x b2.Imports of goods and services x b3.log(Population with ages 15-64) x b4.log(GDP per capita) x b5.Inflation-consumer prices.

The VIF results and correlation matrix is given in the image. As VIF0.8, what should we say about the multicollinearity of these variables? Is there any multicollinearity that exists? If yes, what should we do as a remedy in this situation?

Thank you

std err Intercept Exports of goods and services (% of GD Imports of goods and services (% of GD log Population ages 15-64, total log GDP per capita (current US$) Inflation, consumer prices (annual %) coeff -6.798851558 -0.01756799 0.049624302 0.974529374 1.317474758 -0.00243221 2.811039095 0.017993424 0.018681605 0.102546976 0.18208864 0.029106117 t stat -2.418625756 -0.976356152 2.656318916 9.503248301 7.235348428 -0.083563549 p-value lower upper vif 0.023529004 -12.6005511 -0.997152 0.338627398 -0.05470459 0.01956861 4.79828597 0.013819922 0.01106736 0.08818124 5.10338546 1.31702 E-09 0.76288282 1.18617593 3.51919223 1.78113E-07 0.94166227 1.69328724 1.44478202 0.93409655 -0.06250428 0.05763986 1.21852948 Exports of goods and services (% of GDP) by BOP Imports of goods and services (% of GDP) by Bop Inflation, log GDP per consumer log Population capita prices ages 15-64, total (current US$) (annual %) log Foreign direct investment, net inflows (BOP, current US$) log Foreign direct investment, net inflo 1 Exports of goods and services (% of GD -0.60148771 Imports of goods and services (% of GD -0.675568821 log Population ages 15-64, total 0.846947487 log GDP per capita (current US$) 0.420153102 Inflation, consumer prices (annual %) 0.148666241 1 0.820524304 -0.806880704 0.129397314 -0.386822852 1 1 -0.804649895 -0.190569602 -0.348067076 8.59755E-05 1 0.292537916 -0.14736109 1