I was wondering whether someone could help me set up the code for the propensity score matching.
For my thesis I need to look at the effect of the FTA, in force since 2019, between Japan and EU and how it affected trade on the sector level. I need to look at this via the difference in difference estimator with the treatment group being EU-JPN combination.
My supervisor suggested me to define the control group as the country pairs combinations with which the EU doesn't have an FTA at the moment and suggested I would base the control group via the propensity score macthing method.
I am struggling how to set up the code for the matching method and hope someone could help me out.
I want to match the control group via the cultural variables: GDP POP comlang_off comrelig dist contig
Thanks in advance!
For my thesis I need to look at the effect of the FTA, in force since 2019, between Japan and EU and how it affected trade on the sector level. I need to look at this via the difference in difference estimator with the treatment group being EU-JPN combination.
My supervisor suggested me to define the control group as the country pairs combinations with which the EU doesn't have an FTA at the moment and suggested I would base the control group via the propensity score macthing method.
I am struggling how to set up the code for the matching method and hope someone could help me out.
I want to match the control group via the cultural variables: GDP POP comlang_off comrelig dist contig
Thanks in advance!
