Regression for Determinants of Economic Growth

[Emporio John]

Hi, im trying to find the determinants of economic growth, i have 2 countries and the data spans from 1990-2020. I have 8 variables including log GDP, unemployment rate, debt service, government effectiveness percentile, government expenditure on education, inflation, netmigration and fdi net inflows. Im really struggling and i think its because im doing it wrong but so far i have ran a dfuller test on each variable (and each country) to check for stationarity, it came back telling me that all of them were non stationairy other than unemployment rate and debt service for country 1. so i differenced the rest of the variables and then they were all stationairy. When i run a hausman test it tells me that i can use RE or FE but both the regression results give me really strange results. Any help would be appreicated, thank you.

[Daniel Schaefer]

Hi Emporio (or is it John?), welcome to the forum.

I think you are not getting a response because your question is too vague. Typically, a good question will include a data example generated using the -dataex- command, all relevant code you have tried (including the code for differencing the variables and the code for the regression), and you should post the regression results. All of these things should be wrapped in CODE tags (see the # symbol in the post editor). Finally, it is difficult to know what you mean by "strange results". It might be helpful if you said a bit about why you think the results are strange.

Would you please also read through the forum FAQ linked at the top of the page? It is fairly short, but there is a great deal of useful posting advice there.