Dear Statalist members,
I am running a gravity model regression on aid and green exports, my model is as follows:
green exports = aid + exporter GDP + Importer GDP + distance + being a member in a trade agreement with environmental trade provisions + importer FE + exporter FE + Countrypair FE.
The lowest number of observations that I have for any of these variables is 9000 observations.
I run this model using PPML regression, however, when I run it the results for aid is positive significant as it should be, however the number of observations is severely limited to 42 observations.
I tried removing the dummy variable on trade agreements because Stata omits it anyway and when I do so, the number of observation increases to 4000, but the results become insignificant.
I am not entirely sure why is this happening, but it's important for me to include this control variable as it affects green exports.
Do you have any idea why is this is happening?
Thank you.
I am running a gravity model regression on aid and green exports, my model is as follows:
green exports = aid + exporter GDP + Importer GDP + distance + being a member in a trade agreement with environmental trade provisions + importer FE + exporter FE + Countrypair FE.
The lowest number of observations that I have for any of these variables is 9000 observations.
I run this model using PPML regression, however, when I run it the results for aid is positive significant as it should be, however the number of observations is severely limited to 42 observations.
I tried removing the dummy variable on trade agreements because Stata omits it anyway and when I do so, the number of observation increases to 4000, but the results become insignificant.
I am not entirely sure why is this happening, but it's important for me to include this control variable as it affects green exports.
Do you have any idea why is this is happening?
Thank you.
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