Dear Members, I am studying the impact of financial development on economic growth. For that i am using panel data 64 countries, 11 years by using few proxies for financial development and simple and policy conditioning control variables. Hausman test result supports fixed effects. But i am bit confused to use either time dummies or country dummies or both. could you please comment on it or suggest any relevant literature with same methodology.
Best Regards.
José-Ignacio Antón
Use both types of dummies. You can do it manually or, if using Stata, you can use xtreg, fe for the country dummies and include manually year dummies.
0 votes
0 thanks
More Gitz Negi's questions See All
Similar questions and discussions