[Carlo Lazzaro]

Samia:
1) No, it is not an issue.
2) yes, you can go -xtscc- with T>N panel datasets (issues may actually arise with N>T panle datasets).

[Samia Aourid]

Thank you Carlo Lazzaro for your prompt and clear response. I do have one last question if you don't mind—Is -xtgls- also appropriate to use? (Knowing that I have detected correlation across panels)

[Carlo Lazzaro]

Samia:
yes, it is and has many options to manage heteroskedasticity and serial within/across panels correlation structure.