create a dummy pair of countries

[Daniel Gomez]

Hi,

how can I create a dummy variable for each Partner if my observations are pairs of countries like this:

Exporter	Importer	Year	Trade
Country	Partern 1	1990	Valor
Country	Partner 2	1990	Valor
Partner 1	Country	1990	Valor
Partner 2	Country	1990	Valor
Country	Partner 1	1991	Valor

thanks!

[Carlo Lazzaro]

Daniel:
see -group- function under -egen-.

[Daniel Gomez]

Thanks Carlo, I know how to create a dummy for each pair of countries.
But I would like to create a dummy for each partner:

dummy for Partner 1, dummy for Partner 2.....

[Carlo Lazzaro]

Daniel:
is what follows on target?

. set obs 3
number of observations (_N) was 0, now 3

. g Partner="Partner1" in 1
(2 missing values generated)

. replace Partner="Partner2" in 2
(1 real change made)

. replace Partner="Partner3" in 3
(1 real change made)

. tab Partner, g(Partner_dummy)

    Partner |      Freq.     Percent        Cum.
------------+-----------------------------------
   Partner1 |          1       33.33       33.33
   Partner2 |          1       33.33       66.67
   Partner3 |          1       33.33      100.00
------------+-----------------------------------
      Total |          3      100.00

. list

     +-------------------------------------------+
     |  Partner   Partne~1   Partne~2   Partne~3 |
     |-------------------------------------------|
  1. | Partner1          1          0          0 |
  2. | Partner2          0          1          0 |
  3. | Partner3          0          0          1 |
     +-------------------------------------------+

.

[Daniel Gomez]

yes, thanks.

so it means that I have to do that for each Partner, one by one?

I have more than a hundred Partners.

[Nick Cox]

To get better advice, I think you need to follow our advice.

Why do you want all these dummies any way? That's >100 new variables on one version of this question.

The data example in #1 is schematic and doesn't follow our guidelines to use dataex. Usually real concrete examples beat simplified abstract examples. Is there just one Country somehow and is every other state a Partner?

Does Freedonia as exporter count the same as Freedonia as importer?

[Daniel Gomez]

Ok, Nick Cox.


I am trying to estimate the impact of Regional Trade Agreements (RTA) on "COUNTRY A" trade using a gravity model.

My depended variable is the trade of "COUNTRY A" with around 100 countries between 1984 and 2015 (intervals of 4 years).
Exports from COUNTRY A to country J being one observation, and exports from country J to COUNTRY A, another one.

I would like to control multilateral resistance terms using exporter-time and importer-time fixed effects. However, I am not sure about how should I used them given that my depended variable is just trade of COUNTRY A.

I think I have to create a dummy for each country J (Partner), but I am not sure how to do it.

[Nick Cox]

I don’t understand this enough to add further advice. You may need to start a new thread using key phrases such as trade and gravity model. If you do that, add a cross-reference to that thread here, and vice versa.

[Daniel Gomez]

Ok, Thanks Nick. I will try to follow your advice