Code:
reg lnexport lndist contig comlang_off comcol fta_wto EUtrade Brexit EUBrexit export_* import_* year_*, robust cluster(distw)
Now, i find the distance abnormaly high? Shouldnt it be around -1? I also find it peculiar that "EUtrade", which is if both the reporting and partner country is an EU country, is negative and significantly negative. Is there something i can change in my code to make it better?
I know OLS isn't perfect for my dataset. I will also run a PPML. When I look at other papers and they run an OLS, the lndist seems better.
Glad to get some input.
Sincerely,
John
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