Dear sir or madam,
I'm an undergraduate Economics student and I chose gravity model topic (didn't learned before) for my final year essay. I have some questions of fixed effects.
My essay is studying impact of WTO accession on one country's exports.
The simple form of my data is like
pairid country-origin country-destination year lnexports lndistance WTO(origin) other variables(gdp,RTA,commonlanguage, continguity,etc)
1 A B 2000
1 A C 2000
1 A D 2000
2 A B 2001
2 A C 2001
2 A D 2001
..............
..............
My teacher asked me to just do the simple OLS,without considersing PMML.
My first question is: If I want to include the country pair FE and time FE, is the STATA command like: reg lnexports lndistance WTO(origin) other varibles i.pairid i.year or perhaps xtreg lnexports lndistance WTO(origin) other varibles i.year, fe ??
Second: Since my country-origin doesn't change (always A), is it correct to use i.pairid?(I feel confused)
Thank you very much for your support!
Best,
Jerry
I'm an undergraduate Economics student and I chose gravity model topic (didn't learned before) for my final year essay. I have some questions of fixed effects.
My essay is studying impact of WTO accession on one country's exports.
The simple form of my data is like
pairid country-origin country-destination year lnexports lndistance WTO(origin) other variables(gdp,RTA,commonlanguage, continguity,etc)
1 A B 2000
1 A C 2000
1 A D 2000
2 A B 2001
2 A C 2001
2 A D 2001
..............
..............
My teacher asked me to just do the simple OLS,without considersing PMML.
My first question is: If I want to include the country pair FE and time FE, is the STATA command like: reg lnexports lndistance WTO(origin) other varibles i.pairid i.year or perhaps xtreg lnexports lndistance WTO(origin) other varibles i.year, fe ??
Second: Since my country-origin doesn't change (always A), is it correct to use i.pairid?(I feel confused)
Thank you very much for your support!
Best,
Jerry
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