Dyadic Paneldata regression for a Stata beginner

[Fabian Kadow]

Hello everyone,

I'm currently working on a dyadic data set, which I want to analyze by using a panel data regression. I want to examine the effects of inter state war (indepvar) on the bilateral Net ODAs (depvar) paid by the DAC countries. My dataset consists of 1.749.150 observations (195 countries x 195 countries x 46 years) and I used fixed effects to reduce the problem of endogenity.

Now my question is, if I did the following steps right to analyze my data:

First I grouped my country pairs by:

gen dyad = group (donor recipient)

Next I declalred variable "year" to be my time variable by command:

xtset dyad year, yearly

Last I used the command:

xtreg lnNet_ODA war_t_1 victims_t_1 lnpop_recipient_t_1 lngdp_pc_recipient_t_1 lnOilexport_recipient_t_1 alliance_t_1, fe robust

When I run the regression, every variable except of lngdp_pc_recipient_t_1 is significant and I really wonder why because it seems to easy for me as a rookie....

Best regards and have a nice weekend,
Fabian

[Carlo Lazzaro]

Fabian:
welcome to the list.
Sorry, wrong forum.
Please repost your query on the General forum, as this one is (as per FAQ) for practicing purposes only. Thanks.

[Fabian Kadow]

Hi Mr. Lazzaro,

thanks for the hint. Know it is in the General forum.
Best
Fabian