Hello Statalist community,
I am doing a panel analysis on the impact of environmental aid on green exports. I am suspecting the presence of endogeneity but the tests are inconclusive. I have mainly experimented with Durbin Watson Test and ran 2sls and then tested for endogeneity.
I used 11 types of instruments with their combinations and they were all week, the strongest combination gave me an F-Statistic of 4.
Despite this when I test for endogeneity using the endog option for xtivreg2, I always get that aid is exogenous and when I test using combinations the test doesn't run.
when I run the Durbin Watson Test, some instruments gave me endogenous results while others gave me exogenous,
I am not entirely sure if I have endogeneity, and if I do, none of the instruments I am using is working.
Do you have any suggestions that I can follow?
Thank you.
I am doing a panel analysis on the impact of environmental aid on green exports. I am suspecting the presence of endogeneity but the tests are inconclusive. I have mainly experimented with Durbin Watson Test and ran 2sls and then tested for endogeneity.
I used 11 types of instruments with their combinations and they were all week, the strongest combination gave me an F-Statistic of 4.
Despite this when I test for endogeneity using the endog option for xtivreg2, I always get that aid is exogenous and when I test using combinations the test doesn't run.
when I run the Durbin Watson Test, some instruments gave me endogenous results while others gave me exogenous,
I am not entirely sure if I have endogeneity, and if I do, none of the instruments I am using is working.
Do you have any suggestions that I can follow?
Thank you.
