Collinearity

[Niklas Schmiedel]

Dear everyone,
i´m currently sturggeling with collinearity regarding my Stata output. I´m analyzing trade creation and trade diversion by using bilateral trade data and the ppml method. As i´m trying to do that, one of my two dummy variables (Trade Diversion) is always ommited when i try to use time-fixed effects? Can someone explain why this happends?
I´d appreciate any help.
Best regards

[Carlo Lazzaro]

Niklas:
one of the level of any categorical variable is automatically omitted by Stata to protect your analysis from the so called dummy trap (see, if interested, https://datascience.stackexchange.co...-a-good-practi).

[Niklas Schmiedel]

Thank your very much. I´ll read your suggestion asap.
Best regards