Dear Statalist
I am attending to estimate gravity model of trade of Morocco in my thesis, in order to estimate trade potential for the country with it principal partners, I have data on 21 countries over 17 year and I am using panel data, I would like to estimate it with PPML estimator. First i had problem with dependent variable, i didn't know that i shouldn't logged it, i thought that was the source of the issue that i have in term of the weakness of the coefficients of the variables. Even so the coefficients remain very weak with the correction (with dependent variable not logged), i hope that you can help me with that.
Array
Array
With PIBm: for Moroccan GDP
PIBp : GDP of the partner,
Dmp: Weighted distance between Morocco and it's commercial partner.
expijt1: the exportation of the country i to j in the year t-1.
lcp: common spoken language.