Dear Research fellows, how to assign value to regional variables used as instrument for institutional quality in 2SLS or GMM?

04 April 2018 0 903 Report

Dear research fellows on RG

I have seen in literature, that regional location of a country or its origin such as British, French etc are used as instruments for institutional quality. But I have not found how numeric values are assigned to these. For example out of 20 sample countries 5 belongs to one region, 3 to another, 6 to another... etc.. how we can give numeric weightage to these to estimate.

Sincere Ragards

Khan Asif Khan

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