I am a new user of Stata and trying to learn this software with the videos available. I working on Gravity model of Trade with exports as my dependent variable and product of GDP of domestic(Pakistan) and foreign country( major trading partners), distance and Real effective exchange rates are my independent variables. Other qualitative variables included in my study are common border, common language,common curreny democracy index of Pakistan and other countries. I am running a balanced Panel data from 1991-2014. for major trading partners Pakistan.
My question is Can we use Poisson model for non count dependent variable. AS I am taking exports in constant prices as my dependent variable.
which one is the appropriate command xtpoisson or ppml?
In my model i found distance variable, insignificant.
Some of my variables are dropped because of collinearity problem.
Can someone help me resolving these problems
