Hey Everybody!
I would like to estimate the link between ICT development and GDP growth using system GMM. However, my data sample consists of only 25 countries covering 8 years. So I cannot use GMM as an estimator because my n is too small. What alternative estimator would you recommend instead of GMM in this context? I was going to use a RE/FF model, but I am not sure if this is appropriate because the RE/FF estimators because of the critique about several weaknesses of those models.
Thanks in advance!
I would like to estimate the link between ICT development and GDP growth using system GMM. However, my data sample consists of only 25 countries covering 8 years. So I cannot use GMM as an estimator because my n is too small. What alternative estimator would you recommend instead of GMM in this context? I was going to use a RE/FF model, but I am not sure if this is appropriate because the RE/FF estimators because of the critique about several weaknesses of those models.
Thanks in advance!
