Hi everyone!

I am currently working on my dissertation and I would like to seek your advice on Panel negative binomial random effects model.

I am trying to investigate the effect of bilateral income asymmetry and economic growth differences on the initiation of trade dispute. The dependent variable is the number of trade disputes between country i and j for a particular year, (it is possible for the dependent variable to be 0 if there isn't any trade dispute between the country pair). The control variables are bilateral trade GDP, GDP per capita, real exchange rate, democracy values, mfn tariff rates, distance, export shares and dummy variables like (presence of FTA, common language etc)

The data is unbalanced, n is 7723 and T is 13.

I tried running the command of xtnbreg dependent variable independent variables i.year i.country i.country j, re, irr however, the model does not converge. Can anyone advise me as to why the model fails to converge whenever I add the dummy variables for country i and j?

I would appreciate if everyone can help me with this matter as I am really clueless as to how to solve this issue.

Regards,

Kenneth

I am currently working on my dissertation and I would like to seek your advice on Panel negative binomial random effects model.

I am trying to investigate the effect of bilateral income asymmetry and economic growth differences on the initiation of trade dispute. The dependent variable is the number of trade disputes between country i and j for a particular year, (it is possible for the dependent variable to be 0 if there isn't any trade dispute between the country pair). The control variables are bilateral trade GDP, GDP per capita, real exchange rate, democracy values, mfn tariff rates, distance, export shares and dummy variables like (presence of FTA, common language etc)

The data is unbalanced, n is 7723 and T is 13.

I tried running the command of xtnbreg dependent variable independent variables i.year i.country i.country j, re, irr however, the model does not converge. Can anyone advise me as to why the model fails to converge whenever I add the dummy variables for country i and j?

I would appreciate if everyone can help me with this matter as I am really clueless as to how to solve this issue.

Regards,

Kenneth

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