Hello everyone,
I hope you are doing well. I am a new member of this forum.
I am interested in estimating the impact of income inequalities within countries on bilateral trade flows within a group of countries. It appears that the "ppmlhdfe" command in Stata is currently ideal for estimating the gravity model. However, it is not surprising that using this command leads to the omission of importer and exporter inequality variables. I understand that these variables are unilateral and are likely collinear with the exporter-time, importer-time, and exporter-importer fixed effects.
Since I am interested in the coefficients of these variables, could you please provide recommendations for a high-quality estimation?
Thank you.
I hope you are doing well. I am a new member of this forum.
I am interested in estimating the impact of income inequalities within countries on bilateral trade flows within a group of countries. It appears that the "ppmlhdfe" command in Stata is currently ideal for estimating the gravity model. However, it is not surprising that using this command leads to the omission of importer and exporter inequality variables. I understand that these variables are unilateral and are likely collinear with the exporter-time, importer-time, and exporter-importer fixed effects.
Since I am interested in the coefficients of these variables, could you please provide recommendations for a high-quality estimation?
Thank you.
