Hi,
I have to created slope dummy variables for Cold War and Regions from the following commands:
This way I have created 3 slope dummies for the 3 regions in my sample and used 2 of them in the following regression.
DV stands for dependent variable (economic growth) and IV represent a set of independent variables.
I have three questions in this regard.
Q1) Have I correctly generated the dummy variables?
Q2) Am I correctly interpreting the results? I got positive and significant coefficients on all these slope dummies.
Foreign aid seems to have a positive and significant affect on economic growth in the years after Cold War.
Foreign aid seems to have a stronger positive and significant affect on economic growth in the African and Asian region as compared to Middle East (Base region).
Q3) Can I also use intercept dummies for Cold War and regions with fixed effects negative binomial? As per my understanding intercept dummies will be wiped out with fixed effects nbreg. In the regression, i.country and i.year represents country and year fixed effects.
Best regards,
Imran Khan.
I have to created slope dummy variables for Cold War and Regions from the following commands:
Code:
generate CWDummy = 0 replace CWDummy=1 if (Year > 1990) generate CWSlopeDummy= ForeignAid*CWSlopeDummy generate AfricaDummy = 0 replace AfricaDummy = 1 if (region ==1) generate AfricaSlopeDummy = ForeignAid*AfricaSlopeDummy
Code:
nbreg DV IV CWSlopeDummy AfricaSlopeDummy AfsiaSlopeDummy i.country i.year, vce (cluster country)
I have three questions in this regard.
Q1) Have I correctly generated the dummy variables?
Q2) Am I correctly interpreting the results? I got positive and significant coefficients on all these slope dummies.
Foreign aid seems to have a positive and significant affect on economic growth in the years after Cold War.
Foreign aid seems to have a stronger positive and significant affect on economic growth in the African and Asian region as compared to Middle East (Base region).
Q3) Can I also use intercept dummies for Cold War and regions with fixed effects negative binomial? As per my understanding intercept dummies will be wiped out with fixed effects nbreg. In the regression, i.country and i.year represents country and year fixed effects.
Best regards,
Imran Khan.
