Dear Stata Users
I want to run the model when FDI spillovers affects Total Factor Productivity (TFP) a-la Levinson-Petrin (2003) using value added (lnva). I want my FDI spillovers to be endogenous, so I expect to run command "prodest" with endogenous option "spill" as follow:
prodest lnva if e(sample), free(lnl ) state(lnk) proxy(lnr) method(lp) opt(dfp) poly(3) reps(50) id(_PSID) t(_YEAR) acf va fsresidual(epsilon_LP_all) endogenous(Spill )
My question is, is it possible to show the effect of endogenous "Spill" variable to TFP based on this command? I was wondering because based on Bournakis & Tsionas (2022) "Productivity with Endogenous FDI Spillovers: A Novel Estimation Approach", they can show the effect of endogenous "Spill" variable to TFP in the first step.
I want to run the model when FDI spillovers affects Total Factor Productivity (TFP) a-la Levinson-Petrin (2003) using value added (lnva). I want my FDI spillovers to be endogenous, so I expect to run command "prodest" with endogenous option "spill" as follow:
prodest lnva if e(sample), free(lnl ) state(lnk) proxy(lnr) method(lp) opt(dfp) poly(3) reps(50) id(_PSID) t(_YEAR) acf va fsresidual(epsilon_LP_all) endogenous(Spill )
My question is, is it possible to show the effect of endogenous "Spill" variable to TFP based on this command? I was wondering because based on Bournakis & Tsionas (2022) "Productivity with Endogenous FDI Spillovers: A Novel Estimation Approach", they can show the effect of endogenous "Spill" variable to TFP in the first step.
