Hello everyone,
I am trying to study the relationship between financial development and economic growth in a panel of 135 countries from 1960-2015. I am using two-step system GMM and I have already conducted my baseline regressions with the whole panel of countries. Now my aim is to split the whole sample of countries into high income and middle- and low-income (2 groups) based on their level of GDP per capita. My idea is to do this through percentiles. All the countries that will have a GDP per capita less than the 50th percentile will get a dummy equal to one. All the others (those above the 50th percentile) will get a dummy equal to 0.
I already tried the following command to split the countries in percentiles. However, as it is shown in the output this is not the correct command as the GDP cannot be 0.06 or 0.9. I would highly appreciate if somebody would suggest the command to divide the countries based on the description I wrote above or even other suggestions.
pshare estimate rgdpc, nquantiles (2)
Percentile shares (proportion) Number of obs = 1,388
rgdpc Coef. Std. Err. [95% Conf. Interval]
0-50 .066562 .0028395 .0609918 .0721321
50-100 .933438 .0028395 .9278679 .9390082
Thank you!
I am trying to study the relationship between financial development and economic growth in a panel of 135 countries from 1960-2015. I am using two-step system GMM and I have already conducted my baseline regressions with the whole panel of countries. Now my aim is to split the whole sample of countries into high income and middle- and low-income (2 groups) based on their level of GDP per capita. My idea is to do this through percentiles. All the countries that will have a GDP per capita less than the 50th percentile will get a dummy equal to one. All the others (those above the 50th percentile) will get a dummy equal to 0.
I already tried the following command to split the countries in percentiles. However, as it is shown in the output this is not the correct command as the GDP cannot be 0.06 or 0.9. I would highly appreciate if somebody would suggest the command to divide the countries based on the description I wrote above or even other suggestions.
pshare estimate rgdpc, nquantiles (2)
Percentile shares (proportion) Number of obs = 1,388
rgdpc Coef. Std. Err. [95% Conf. Interval]
0-50 .066562 .0028395 .0609918 .0721321
50-100 .933438 .0028395 .9278679 .9390082
Thank you!
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