Hi,
Hoping someone can help. I am currently running a FE regression, assessing the impact of gender inequality in China on economic growth at the provincial level, so I have 30 provinces with data from 2000-2019.
I am looking to control for regions, as a proxy for technical efficiency, as the data is available for technical efficiency but other literature argues well that regions vary in technical efficiency and thus can use them as dummies to control for this.
I have manually created my dummies, following another threads advice. My regression is below:
"
global id p_code
global t year
global ylist ln_grp_pc
global xlist NC NEC EC CC SC WC ln_ngd ln_elec_con1 ln_fyschool ln_myschool ln_n_medical_beds1
xtreg $ylist $xlist, fe
"
where NC NEC EC CC SC WC are my dummies, for North, North East, East, Central China etc respectively.
They are dropped however due to collinearity, which I understand is because they do not vary over time. Is there a way I can control for the regions, to proxy for a measure of technical efficiency?
Any help would be greatly appreciated. Thanks!
Hoping someone can help. I am currently running a FE regression, assessing the impact of gender inequality in China on economic growth at the provincial level, so I have 30 provinces with data from 2000-2019.
I am looking to control for regions, as a proxy for technical efficiency, as the data is available for technical efficiency but other literature argues well that regions vary in technical efficiency and thus can use them as dummies to control for this.
I have manually created my dummies, following another threads advice. My regression is below:
"
global id p_code
global t year
global ylist ln_grp_pc
global xlist NC NEC EC CC SC WC ln_ngd ln_elec_con1 ln_fyschool ln_myschool ln_n_medical_beds1
xtreg $ylist $xlist, fe
"
where NC NEC EC CC SC WC are my dummies, for North, North East, East, Central China etc respectively.
They are dropped however due to collinearity, which I understand is because they do not vary over time. Is there a way I can control for the regions, to proxy for a measure of technical efficiency?
Any help would be greatly appreciated. Thanks!
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