Hello,
I hope someone might help me with the following problem. I am trying to estimate a gravity equation on bilateral FDI flows and country pair fixed effects. Somehow when I estimate it the following way: "eststo: xtreg ln_FDI_position $varlist2, fe robust" R2 is wierdly low (0.05). I tried estimating the fe with generating dummies "qui tab year, g(dyear)" but that does not work (it says that countrypair has to many values). Does anybody has an idea on how to fix that?
Thank you in advance!
I hope someone might help me with the following problem. I am trying to estimate a gravity equation on bilateral FDI flows and country pair fixed effects. Somehow when I estimate it the following way: "eststo: xtreg ln_FDI_position $varlist2, fe robust" R2 is wierdly low (0.05). I tried estimating the fe with generating dummies "qui tab year, g(dyear)" but that does not work (it says that countrypair has to many values). Does anybody has an idea on how to fix that?
Thank you in advance!
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