Hello

Just before doing a panel regression, I wanted to look at the correlation matrix for the descriptive part.


1. i noticed during a Shapiro-Wilk-Test that my data is not normally distributed and therefore i made a Spearmans'rho correlation matrix instead of a Persons' r.
-Q: Is this procedure correct so far?



2. when looking at the coefficients in the Spearmans matrix, I noticed that all my variables are strongly positively correlated. I remember from courses that in such a situation no linear regression should be made.
-Q: However, is it allowed to make a panel regression if all coefficients are strongly positively correlated (0.8 and more) with each other?


Thank you very much for your help.