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  • Growth regression for panel data

    Folks,

    Perhaps people could shed some light on the following issue I have.

    I wish to investigate the effect, institutional quality, oil resources and investment can have on the growth of GDP across a number of countries over 25 years.

    To follow my issue, I've attached a sample of the data which I'm using.

    I wonder why do I get such a small overall r-squared when I utilise growth rates as the dependent variable?

    Anytime I've looked at papers which utilise growth rates, they seem to get a reasonable r-squared.

    Would I be miss specifying the variables in my regressions?

    Any advice welcome.


    Code:
    *Creating logs
    gen loggdp =ln(rgdpl)
    gen logoilp =ln(oilp)
    gen growthgdp = D.loggdp/L.loggdp
    *Regression
    encode country, gen(id)
    ***Growth in the log of GDP as the dependent variable
    xtreg growthgdp ki logoilp pr, fe robust cluster(id)
    ***Level of GDP as the dependent variable
    xtreg loggdp ki logoilp pr, fe robust cluster(id)
    
    
    . xtreg growthgdp ki logoilp pr, fe robust cluster(id)
    
    Fixed-effects (within) regression               Number of obs     =      1,464
    Group variable: id                              Number of groups  =         61
    
    R-sq:                                           Obs per group:
         within  = 0.0202                                         min =         24
         between = 0.0019                                         avg =       24.0
         overall = 0.0058                                         max =         24
    
                                                    F(3,60)           =      14.47
    corr(u_i, Xb)  = -0.5626                        Prob > F          =     0.0000
    
                                        (Std. Err. adjusted for 61 clusters in id)
    ------------------------------------------------------------------------------
                 |               Robust
       growthgdp |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
    -------------+----------------------------------------------------------------
              ki |   .0001359   .0000525     2.59   0.012     .0000308    .0002409
         logoilp |   .0005964   .0003064     1.95   0.056    -.0000166    .0012094
              pr |  -.0003668   .0002276    -1.61   0.112    -.0008221    .0000886
           _cons |  -.0007082   .0014804    -0.48   0.634    -.0036695     .002253
    -------------+----------------------------------------------------------------
         sigma_u |   .0028317
         sigma_e |  .00734709
             rho |  .12933507   (fraction of variance due to u_i)
    ------------------------------------------------------------------------------
    
    .
    end of do-file
    
    . do "C:\Users\SEANOC~1\AppData\Local\Temp\STD08000000.tmp"
    
    . xtreg loggdp ki logoilp pr, fe robust cluster(id)
    
    Fixed-effects (within) regression               Number of obs     =      1,525
    Group variable: id                              Number of groups  =         61
    
    R-sq:                                           Obs per group:
         within  = 0.0689                                         min =         25
         between = 0.4456                                         avg =       25.0
         overall = 0.3910                                         max =         25
    
                                                    F(3,60)           =       5.46
    corr(u_i, Xb)  = 0.5568                         Prob > F          =     0.0022
    
                                        (Std. Err. adjusted for 61 clusters in id)
    ------------------------------------------------------------------------------
                 |               Robust
          loggdp |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
    -------------+----------------------------------------------------------------
              ki |   .0056087   .0029953     1.87   0.066    -.0003829    .0116002
         logoilp |    .047033   .0152014     3.09   0.003     .0166257    .0774403
              pr |  -.0166394   .0169254    -0.98   0.330    -.0504952    .0172165
           _cons |   8.909745   .0864552   103.06   0.000     8.736809    9.082682
    -------------+----------------------------------------------------------------
         sigma_u |  1.1281169
         sigma_e |  .19666628
             rho |  .97050494   (fraction of variance due to u_i)
    ------------------------------------------------------------------------------

    [CODE]
    Code:
    * Example generated by -dataex-. To install: ssc install dataex
    clear
    input str20 country str3 code int year float(pop rgdpl ki oilp) byte(pr cl) long id
    "Algeria"              "DZA" 1986  22642.54   5216.77 42.64   19.18712 6 6  1
    "Algeria"              "DZA" 1987  23254.96   5172.37  33.5  18.830849 6 6  1
    "Algeria"              "DZA" 1988  23880.77   5016.98 36.32   17.93663 5 6  1
    "Algeria"              "DZA" 1989  24496.31   5030.59 37.18  18.385494 6 4  1
    "Algeria"              "DZA" 1990  25089.03   5002.35 34.88   19.12585 4 4  1
    "Algeria"              "DZA" 1991  25687.08      4902 31.56  18.607159 4 4  1
    "Algeria"              "DZA" 1992  26298.45   4840.26 28.63  18.614386 7 6  1
    "Algeria"              "DZA" 1993  26916.44   4641.32  27.4  17.786892 7 6  1
    "Algeria"              "DZA" 1994  27521.48   4487.26 28.94  17.183025 7 7  1
    "Algeria"              "DZA" 1995  28089.15   4568.67 28.08    16.9802 6 6  1
    "Algeria"              "DZA" 1996  28604.04    4730.2 25.67  17.558678 6 6  1
    "Algeria"              "DZA" 1997  29083.56   4699.63 24.43  17.786556 6 6  1
    "Algeria"              "DZA" 1998  29535.58   4887.76 27.96   17.33122 6 5  1
    "Algeria"              "DZA" 1999  29979.82   4964.24 26.56    16.9062 6 5  1
    "Algeria"              "DZA" 2000  30429.23   4990.69 24.22  17.189203 6 5  1
    "Algeria"              "DZA" 2001  30874.31    5066.1 27.02   17.89743 6 5  1
    "Algeria"              "DZA" 2002  31312.48   5253.01 30.23  18.856487 6 5  1
    "Algeria"              "DZA" 2003   31740.9   5552.08 30.57   20.51535 6 5  1
    "Algeria"              "DZA" 2004  32157.67   5762.47 32.67   20.93596 6 5  1
    "Algeria"              "DZA" 2005  32560.74   5988.78 32.35   21.93513 6 5  1
    "Algeria"              "DZA" 2006  32959.25   6003.41 32.76  21.788576 6 5  1
    "Algeria"              "DZA" 2007  33362.74   6109.96 35.68   21.52563 6 5  1
    "Algeria"              "DZA" 2008  33769.67   6178.59 38.62  21.124804 6 5  1
    "Algeria"              "DZA" 2009  34178.19   6179.05 43.31  20.395535 6 5  1
    "Algeria"              "DZA" 2010  34586.18   6260.21 41.39   19.85048 6 5  1
    "Angola"               "AGO" 1986   7748.63   1819.35 18.46  13.251935 7 7  2
    "Angola"               "AGO" 1987    7878.4   1920.93 19.74  16.648308 7 7  2
    "Angola"               "AGO" 1988   8023.39   2010.23 13.96  20.532797 7 7  2
    "Angola"               "AGO" 1989   8153.84   1988.85  12.9   20.33849 7 7  2
    "Angola"               "AGO" 1990   8296.61   1938.66 14.01  20.868706 7 7  2
    "Angola"               "AGO" 1991   8496.81   1866.04 31.96  21.450504 6 4  2
    "Angola"               "AGO" 1992   8741.84   1978.67 47.34   21.94914 6 6  2
    "Angola"               "AGO" 1993   8966.26   1613.52 44.15   20.69501 7 7  2
    "Angola"               "AGO" 1994   9172.28   1736.75  39.5   21.30451 7 7  2
    "Angola"               "AGO" 1995   9419.12   1921.76 43.42   25.00305 6 6  2
    "Angola"               "AGO" 1996   9650.61   2576.11 47.14   26.78444 6 6  2
    "Angola"               "AGO" 1997   9855.58   2192.37    42  26.421516 6 6  2
    "Angola"               "AGO" 1998  10039.17   2396.16 52.14  26.709286 6 6  2
    "Angola"               "AGO" 1999  10215.44   2404.48 43.13  26.603186 6 6  2
    "Angola"               "AGO" 2000  10377.27   2331.82 19.91   26.24306 6 6  2
    "Angola"               "AGO" 2001  10538.39   2191.45 19.15   25.69605 6 6  2
    "Angola"               "AGO" 2002  10760.51   2485.73 17.76   30.39746 6 5  2
    "Angola"               "AGO" 2003  11057.09   2458.16 18.19  29.785524 6 5  2
    "Angola"               "AGO" 2004  11391.13   2598.93 13.36  33.786068 6 5  2
    "Angola"               "AGO" 2005  11706.95   3055.03 11.82   38.94852 6 5  2
    "Angola"               "AGO" 2006  11992.81   3598.65 16.28   43.21503 6 5  2
    "Angola"               "AGO" 2007   12263.6   4465.24 20.98   52.01078 6 5  2
    "Angola"               "AGO" 2008  12531.36   4965.34 30.87   57.65185 6 5  2
    "Angola"               "AGO" 2009  12799.29    5166.7 24.47   54.41165 6 5  2
    "Angola"               "AGO" 2010  13068.16   5108.19  18.7   54.40177 6 5  2
    "Argentina"            "ARG" 1986  31144.99   7617.96 18.27   5.520464 2 1  3
    "Argentina"            "ARG" 1987  31624.62   7690.19 20.67   5.442151 2 1  3
    "Argentina"            "ARG" 1988  32099.32   7533.88 20.76   5.595921 2 1  3
    "Argentina"            "ARG" 1989  32571.62   6902.71 18.49   5.562661 1 2  3
    "Argentina"            "ARG" 1990  33035.58   6940.77  16.3   5.754234 1 3  3
    "Argentina"            "ARG" 1991  33504.41   7422.89 17.35   5.765066 1 3  3
    "Argentina"            "ARG" 1992  33966.85   7845.65 19.13   6.418293 2 3  3
    "Argentina"            "ARG" 1993  34407.15   8166.97 20.73   6.860145 2 3  3
    "Argentina"            "ARG" 1994  34846.89   8508.27 22.13   7.467451 2 3  3
    "Argentina"            "ARG" 1995  35273.84   8328.86 19.52   8.011109 2 3  3
    "Argentina"            "ARG" 1996  35682.96   8641.37 21.03   8.401275 2 3  3
    "Argentina"            "ARG" 1997  36102.16   9147.69 22.89   9.150508 2 3  3
    "Argentina"            "ARG" 1998  36517.92   9403.53  23.1   9.164379 3 3  3
    "Argentina"            "ARG" 1999  36923.42   9054.73 19.71   8.600447 2 3  3
    "Argentina"            "ARG" 2000  37335.65   8901.76 19.07   8.131291 1 2  3
    "Argentina"            "ARG" 2001  37694.17   8552.14 17.32   8.483185 3 3  3
    "Argentina"            "ARG" 2002  37999.45   7915.67 11.58   8.314334 3 3  3
    "Argentina"            "ARG" 2003  38336.88   8441.59 15.09   8.242769 2 2  3
    "Argentina"            "ARG" 2004  38741.83   8977.08  18.2   7.773381 2 2  3
    "Argentina"            "ARG" 2005  39181.26   9670.71 19.24   7.425394 2 2  3
    "Argentina"            "ARG" 2006  39614.43  10321.75 21.01     7.3921 2 2  3
    "Argentina"            "ARG" 2007  40048.82  11001.48 22.39   7.119988 2 2  3
    "Argentina"            "ARG" 2008     40482  11480.31 24.48   7.222483 2 2  3
    "Argentina"            "ARG" 2009  40913.58  11590.13 21.95   7.151783 2 2  3
    "Argentina"            "ARG" 2010   41343.2  12337.59 24.27   6.979034 2 2  3
    "Australia"            "AUS" 1986  15900.42  24548.69 22.35  13.915116 1 1  4
    "Australia"            "AUS" 1987  16136.72  25595.43  23.5  14.445247 1 1  4
    "Australia"            "AUS" 1988  16400.73  26106.52 25.59  14.079393 1 1  4
    "Australia"            "AUS" 1989   16680.6  26545.43 25.41  12.750938 1 1  4
    "Australia"            "AUS" 1990  16956.24  26184.01 21.74   14.34696 1 1  4
    "Australia"            "AUS" 1991  17202.12  26253.17 20.29  13.477468 1 1  4
    "Australia"            "AUS" 1992  17418.93  26979.44 21.45  12.965384 1 1  4
    "Australia"            "AUS" 1993   17607.8  27632.51  22.1  12.222857 1 1  4
    "Australia"            "AUS" 1994  17781.09  28618.82 23.87   12.82573 1 1  4
    "Australia"            "AUS" 1995  17975.63  29522.16 23.14  13.130322 1 1  4
    "Australia"            "AUS" 1996  18195.85  30433.28 24.05  13.378277 1 1  4
    "Australia"            "AUS" 1997  18415.26  31509.71 24.98  13.769006 1 1  4
    "Australia"            "AUS" 1998  18620.84  32774.72 25.71  12.726604 1 1  4
    "Australia"            "AUS" 1999  18830.25  33833.67 26.08  12.540106 1 1  4
    "Australia"            "AUS" 2000  19053.19  34086.45 23.48  15.863027 1 1  4
    "Australia"            "AUS" 2001  19294.26  34948.56 24.46  14.533538 1 1  4
    "Australia"            "AUS" 2002  19534.94  35820.03 26.97   13.90582 1 1  4
    "Australia"            "AUS" 2003  19766.54   36964.4  28.4  11.629842 1 1  4
    "Australia"            "AUS" 2004  19995.08  37653.78  29.2  10.174034 1 1  4
    "Australia"            "AUS" 2005  20232.35  38383.84 30.52  10.336598 1 1  4
    "Australia"            "AUS" 2006  20489.47  39281.35 31.46   9.878385 1 1  4
    "Australia"            "AUS" 2007  20749.62  40287.28 33.39   10.33363 1 1  4
    "Australia"            "AUS" 2008  21007.31  40387.13 32.46  10.211527 1 1  4
    "Australia"            "AUS" 2009  21262.64  40814.65 32.71  10.170774 1 1  4
    "Australia"            "AUS" 2010  21515.75  41107.49 34.07   10.24824 1 1  4
    "Austria"              "AUT" 1986   7568.24  24507.12 23.31   1.214107 1 1  5
    "Austria"              "AUT" 1987    7578.9  24982.82 23.56  1.1738298 1 1  5
    "Austria"              "AUT" 1988   7599.79  25777.74 25.04  1.2854762 1 1  5
    "Austria"              "AUT" 1989   7627.86  26725.23 25.69  1.3047056 1 1  5
    "Austria"              "AUT" 1990   7722.95   27511.8 25.96   1.257736 1 1  5
    "Austria"              "AUT" 1991   7818.42  27956.03 26.58   1.391999 1 1  5
    "Austria"              "AUT" 1992   7914.97  28140.89 25.87  1.2658018 1 1  5
    "Austria"              "AUT" 1993    7988.6  28249.67 24.89   1.190872 1 1  5
    "Austria"              "AUT" 1994   8027.54  28559.88 25.84   1.195504 1 1  5
    "Austria"              "AUT" 1995   8047.43  29356.42 27.06  1.2545786 1 1  5
    "Austria"              "AUT" 1996   8060.85  29899.53 26.71   1.207325 1 1  5
    "Austria"              "AUT" 1997   8069.88  30605.02 26.45  1.0861195 1 1  5
    "Austria"              "AUT" 1998   8078.62  31684.59  26.2  1.1613343 1 1  5
    "Austria"              "AUT" 1999   8094.16  32662.34 26.26  1.0475072 1 1  5
    "Austria"              "AUT" 2000   8113.41     33625 25.88  1.1132959 1 1  5
    "Austria"              "AUT" 2001   8131.69  33838.96 25.47  1.1349603 1 1  5
    "Austria"              "AUT" 2002   8148.31  34266.47 23.84  1.2046996 1 1  5
    "Austria"              "AUT" 2003   8162.66  34558.42 24.94  1.1585215 1 1  5
    "Austria"              "AUT" 2004   8174.76  35231.65 24.76  1.1815135 1 1  5
    "Austria"              "AUT" 2005   8184.69  36150.99 24.61  1.1113183 1 1  5
    "Austria"              "AUT" 2006   8192.88  37348.43 24.18  1.1992503 1 1  5
    "Austria"              "AUT" 2007   8199.78   38761.1 24.85   1.232269 1 1  5
    "Austria"              "AUT" 2008   8205.53  39329.92 24.02  1.2167904 1 1  5
    "Austria"              "AUT" 2009   8210.28  37634.09 22.12  1.2532957 1 1  5
    "Austria"              "AUT" 2010   8214.16  38585.63 22.34   1.275938 1 1  5
    "Bahrain"              "BHR" 1986    439.41  17308.24 34.61   43.76212 5 5  6
    "Bahrain"              "BHR" 1987    455.78  16736.39 31.25   41.54568 5 5  6
    "Bahrain"              "BHR" 1988    471.98  17846.78 32.15   40.62542 5 5  6
    "Bahrain"              "BHR" 1989    488.63  18267.01 33.01   38.81232 6 5  6
    "Bahrain"              "BHR" 1990    505.67  18157.08 28.55  34.618107 6 5  6
    "Bahrain"              "BHR" 1991    522.52  19024.79  43.1  30.632135 6 5  6
    "Bahrain"              "BHR" 1992    538.02  20074.27 42.87  30.269255 6 5  6
    "Bahrain"              "BHR" 1993    552.64   19780.6 22.03  36.058544 6 6  6
    "Bahrain"              "BHR" 1994     567.5  20201.39 34.58  35.384148 6 6  6
    "Bahrain"              "BHR" 1995    582.07  19348.77 25.89  33.124283 7 6  6
    "Bahrain"              "BHR" 1996    596.47   19595.9 29.17   28.36823 7 6  6
    "Bahrain"              "BHR" 1997    610.85  20013.28 32.86   32.09569 7 6  6
    "Bahrain"              "BHR" 1998    625.21  20789.69 36.36   28.78764 7 6  6
    "Bahrain"              "BHR" 1999    639.96  19734.58 21.99   28.27207 7 6  6
    "Bahrain"              "BHR" 2000    654.86  20786.33 25.13   27.74315 7 6  6
    "Bahrain"              "BHR" 2001    672.09  20820.93 23.68  26.749277 6 5  6
    "Bahrain"              "BHR" 2002    714.83  22003.97 35.88   25.22056 5 5  6
    "Bahrain"              "BHR" 2003       781  21770.04 38.08   23.17567 5 5  6
    "Bahrain"              "BHR" 2004    848.12   22022.3 40.68  21.779003 5 5  6
    "Bahrain"              "BHR" 2005    915.97  22013.14 40.69    18.9379 5 5  6
    "Bahrain"              "BHR" 2006    984.39  22836.86 45.16  18.114187 5 5  6
    "Bahrain"              "BHR" 2007   1053.58  23996.68 48.96  16.779575 5 5  6
    "Bahrain"              "BHR" 2008   1107.29  24560.31 48.58  16.019463 5 5  6
    "Bahrain"              "BHR" 2009   1144.37  23151.67 43.34  15.528354 6 5  6
    "Bahrain"              "BHR" 2010   1180.08  23096.51 45.15   14.58593 6 5  6
    "Barbados"             "BRB" 1986    258.26  23841.68 22.78  2.6201675 1 1  7
    "Barbados"             "BRB" 1987    259.12  25289.16 22.48  1.7181144 1 1  7
    "Barbados"             "BRB" 1988    259.95  25676.89 24.26  1.6236217 1 1  7
    "Barbados"             "BRB" 1989    261.09  26853.48 25.99  1.3305885 1 1  7
    "Barbados"             "BRB" 1990    262.26  26074.03 25.79  1.5274024 1 1  7
    "Barbados"             "BRB" 1991    263.34   24656.8 27.47  1.4546083 1 1  7
    "Barbados"             "BRB" 1992     264.6  22055.56 16.09  1.7012504 1 1  7
    "Barbados"             "BRB" 1993     265.7  22586.21 21.22  1.5549384 1 1  7
    "Barbados"             "BRB" 1994    266.63  22975.57 22.74    1.48935 1 1  7
    "Barbados"             "BRB" 1995    267.67  23639.38 25.26  1.5281265 1 1  7
    "Barbados"             "BRB" 1996    268.81  23866.79  23.9  1.6058452 1 1  7
    "Barbados"             "BRB" 1997    270.06  25866.93 27.33  1.0976491 1 1  7
    "Barbados"             "BRB" 1998    271.29  27201.05 29.84  2.1626475 1 1  7
    "Barbados"             "BRB" 1999     272.5  28229.14 31.52   2.600421 1 1  7
    "Barbados"             "BRB" 2000    273.68  28215.13 27.89  2.0405219 1 1  7
    "Barbados"             "BRB" 2001    274.91  27134.02 28.49   1.687516 1 1  7
    "Barbados"             "BRB" 2002    276.22  26309.02 28.68  1.3214104 1 1  7
    "Barbados"             "BRB" 2003    277.55  26350.23  21.9  1.3150784 1 1  7
    "Barbados"             "BRB" 2004    278.82  28211.61 24.53  1.3120075 1 1  7
    "Barbados"             "BRB" 2005    280.04  28575.05 24.63  1.3033853 1 1  7
    "Barbados"             "BRB" 2006    281.21  28942.21 29.16  1.3417296 1 1  7
    "Barbados"             "BRB" 2007    282.36  29964.07 25.39  1.4329184 1 1  7
    "Barbados"             "BRB" 2008     283.5  30120.42 25.62  1.4175133 1 1  7
    "Barbados"             "BRB" 2009    284.59  28009.03 25.11   .9824309 1 1  7
    "Barbados"             "BRB" 2010    285.65  28112.25 24.31  1.2790653 1 1  7
    "Bolivia"              "BOL" 1986   6041.35   2552.21 12.02   1.410046 2 3  8
    "Bolivia"              "BOL" 1987   6156.37   2589.64 12.92  1.3975536 2 3  8
    "Bolivia"              "BOL" 1988   6283.16   2617.99  9.48   1.420381 2 3  8
    "Bolivia"              "BOL" 1989   6423.14   2675.73   7.7  1.4469233 2 3  8
    "Bolivia"              "BOL" 1990    6573.9   2724.14   8.7  1.4420685 2 3  8
    "Bolivia"              "BOL" 1991   6731.48   2776.31 10.77   1.409352 2 3  8
    "Bolivia"              "BOL" 1992   6893.45   2754.78 11.17  1.5089993 2 3  8
    "Bolivia"              "BOL" 1993   7054.34   2810.49 10.69   1.565256 2 3  8
    "Bolivia"              "BOL" 1994   7214.81   2892.92  9.08  1.5874164 2 3  8
    "Bolivia"              "BOL" 1995   7374.87    2953.8  9.77  1.7502714 2 4  8
    "Bolivia"              "BOL" 1996    7534.4   2999.65 11.18  1.8370695 2 3  8
    "Bolivia"              "BOL" 1997   7695.15    3049.1 14.03   1.826646 1 3  8
    "Bolivia"              "BOL" 1998    7858.9    3098.8 17.37  2.0582695 1 3  8
    "Bolivia"              "BOL" 1999   8025.56    3086.5 13.87  1.9014446 1 3  8
    "Bolivia"              "BOL" 2000    8195.1   3117.14 12.46  1.8009335 1 3  8
    "Bolivia"              "BOL" 2001   8367.45   3133.64 10.02   1.956562 1 3  8
    "Bolivia"              "BOL" 2002   8542.49   3128.15 11.59  2.0176022 2 3  8
    "Bolivia"              "BOL" 2003   8719.06   3170.79  9.76  1.7967367 3 3  8
    "Bolivia"              "BOL" 2004   8895.97   3258.03  8.21   2.516692 3 3  8
    "Bolivia"              "BOL" 2005   9072.94   3312.74 10.04  2.5209675 3 3  8
    "Bolivia"              "BOL" 2006   9249.71   3418.85  9.06  2.4195874 3 3  8
    "Bolivia"              "BOL" 2007   9425.94   3498.94  9.65   2.394066 3 3  8
    "Bolivia"              "BOL" 2008   9601.26   3613.28 11.86   1.959998 3 3  8
    "Bolivia"              "BOL" 2009   9775.25   3661.08 11.94   1.716087 3 3  8
    "Bolivia"              "BOL" 2010   9947.42   3743.15  12.3    1.75673 3 3  8
    "Brazil"               "BRA" 1986 140196.28   6749.93 23.52   1.926508 2 2  9
    "Brazil"               "BRA" 1987 143026.55   6757.84 22.72  1.9587276 2 2  9
    "Brazil"               "BRA" 1988 145872.75   6543.25 21.87  1.8786248 2 3  9
    "Brazil"               "BRA" 1989 148658.64   6486.06 19.16   1.938527 2 2  9
    "Brazil"               "BRA" 1990 151170.06   6162.65 18.08  1.9825866 2 3  9
    "Brazil"               "BRA" 1991 153583.95   6116.77 19.53  1.9926163 2 3  9
    "Brazil"               "BRA" 1992 156032.06   6010.72 18.27  1.9264343 2 3  9
    "Brazil"               "BRA" 1993 158512.05   6121.93 18.77  1.9328543 3 4  9
    "Brazil"               "BRA" 1994 161017.06   6377.02 20.27  2.1697538 2 4  9
    "Brazil"               "BRA" 1995  163544.3   6649.07 22.51    2.20899 2 4  9
    "Brazil"               "BRA" 1996 166085.86   6693.85 23.28  2.4317966 2 4  9
    "Brazil"               "BRA" 1997 168638.73   6823.77 24.69  2.5370066 3 4  9
    "Brazil"               "BRA" 1998 171201.16   6714.46 24.04   2.733992 3 4  9
    "Brazil"               "BRA" 1999 173763.88   6627.25 21.06   2.998849 3 4  9
    "Brazil"               "BRA" 2000 176319.63   6834.34  22.2   3.175761 3 3  9
    "Brazil"               "BRA" 2001 178869.66   6818.13 21.36   3.210842 3 3  9
    "Brazil"               "BRA" 2002  181417.6   6854.75 18.62   3.536761 2 3  9
    "Brazil"               "BRA" 2003  183959.9    6816.5 18.14   3.664483 2 3  9
    "Brazil"               "BRA" 2004  186488.6    7118.3 19.17  3.6002815 2 3  9
    "Brazil"               "BRA" 2005  188993.1   7234.05 18.15   3.935042 2 2  9
    "Brazil"               "BRA" 2006    191469    7432.3 19.24  4.1356783 2 2  9
    "Brazil"               "BRA" 2007  193918.6   7789.22 21.15   4.298088 2 2  9
    "Brazil"               "BRA" 2008  196342.6    8085.6 23.27  4.5200906 2 2  9
    "Brazil"               "BRA" 2009 198739.27   7975.77 19.54  4.7047834 2 2  9
    "Brazil"               "BRA" 2010 201103.33    8324.7 22.54   4.923103 2 2  9
    "Brunei"               "BRN" 1986    224.73  52458.09 11.81   294.3072 6 5 10
    "Brunei"               "BRN" 1987    231.82  49964.65 11.68   236.5005 6 5 10
    "Brunei"               "BRN" 1988    238.88  50694.68  12.3   226.4557 6 6 10
    "Brunei"               "BRN" 1989    245.85  48865.71 14.35   211.1521 6 6 10
    "Brunei"               "BRN" 1990    252.89  46913.28 15.42  231.28885 6 5 10
    "Brunei"               "BRN" 1991    259.25  47100.65 16.24  241.29807 6 5 10
    "Brunei"               "BRN" 1992    265.76  48265.68 18.26  243.80287 7 6 10
    "Brunei"               "BRN" 1993    273.11  49388.67 21.14  237.46184 7 6 10
    "Brunei"               "BRN" 1994     280.5  48785.01 18.74  234.51353 7 6 10
    "Brunei"               "BRN" 1995    287.99  51094.57 18.91  223.35133 7 5 10
    "Brunei"               "BRN" 1996    295.57  53904.93 32.52   205.8085 7 5 10
    "Brunei"               "BRN" 1997    303.11  49386.16 21.46   211.0482 7 5 10
    "Brunei"               "BRN" 1998    310.52  44418.77 20.28  211.20277 7 5 10
    "Brunei"               "BRN" 1999     317.9  46212.71 15.25   234.5291 7 5 10
    "Brunei"               "BRN" 2000     325.3  48107.64 10.22   241.6515 7 5 10
    "Brunei"               "BRN" 2001    332.65  48795.74 10.51  238.74353 7 5 10
    "Brunei"               "BRN" 2002    339.99  50159.62 14.57  203.33954 6 5 10
    "Brunei"               "BRN" 2003    347.26  50683.16 11.18   206.3993 6 5 10
    "Brunei"               "BRN" 2004    354.31  50713.23 11.26   210.5991 6 5 10
    "Brunei"               "BRN" 2005    361.11  48775.91 11.54  215.44363 6 5 10
    "Brunei"               "BRN" 2006    367.82  50448.33 11.11    218.719 6 5 10
    "Brunei"               "BRN" 2007    374.58  47850.74 14.55  171.02313 6 5 10
    "Brunei"               "BRN" 2008    381.37  44350.66 17.45  150.99255 6 5 10
    "Brunei"               "BRN" 2009    388.19  43351.43 17.48  145.36961 6 5 10
    "Brunei"               "BRN" 2010    395.03  44543.01 16.47  147.28676 6 5 10

  • #2
    I am not an economist, but I believe your calculation of growthgdp is correct. At least as I would ordinarily understand the term, growthgdp would be D.rgdpl/L.rgdpl, whereas you have calculated the growth in log gdp, which, naturally, would be (much) smaller and probably exhibit less variability.

    Comment


    • #3
      Clyde made the point. You can compute the GDP growth either as
      Code:
      gen growthgdp = D.rgdpl / L.rgdpl
      or with the often used logarithmic approximation:
      Code:
      gen loggdp = ln(rgdpl)
      gen growthgdp = D.loggdp
      The latter is usually preferred, in particular when you want to consider a dynamic model with the lagged dependent variable L.loggdp as a regressor in one of your model specifications.
      https://www.kripfganz.de/stata/

      Comment

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