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  • Dummy variable deleted due to collinearity.

    I am trying to find the effect of exchange rate liberalisation on imports of a country, however the dummy is deleted when i regress due to collinearity what can i do?
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  • #2
    sorry ignore the first output. Use this
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    • #3
      Bakora:
      as per sky-rocketing R-square, your model is probably overfitted.
      Moreover, if you categorical variables refers to one country only, it is basically redundant and it makes sense that Stata omits it due to colinearity with the remaining predictors.
      Kind regards,
      Carlo
      (Stata 19.0)

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