I first run the regression for the period 2001 to 2018. Guided by the Hausman test, I have used country fixed effects. Also, standard errors are clustered at the country-level. I find that a 1% increase in growth of EM trade partners is associated with a 0.5% increase in the growth of the reporting country.
Code:
xtreg realgthpc l.tpg_aenia l.tpg_em l.tpg_chn realpcgdp_5yago_bn gfcf_nomgdp prim_enrol cpi_ep_inflatn depratio open_gdp globalgthpc oiltrdbal_gdp oiltrdbal_gdp_5y gth_commexp_prind crisis_dummy moderation_dummy recovery_dummy, fe vce(cluster CountryNo)
Code:
Fixed-effects (within) regression Number of obs = 343 Group variable: CountryNo Number of groups = 26 R-sq: Obs per group: within = 0.3832 min = 4 between = 0.0080 avg = 13.2 overall = 0.1749 max = 17 F(16,25) = 15.10 corr(u_i, Xb) = -0.5907 Prob > F = 0.0000 (Std. Err. adjusted for 26 clusters in CountryNo) ------------------------------------------------------------------------------------ | Robust realgthpc | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------------+---------------------------------------------------------------- tpg_aenia | L1. | -.0420772 .1956026 -0.22 0.831 -.4449283 .3607739 | tpg_em | L1. | .5208979 .2481788 2.10 0.046 .009764 1.032032 | tpg_chn | L1. | .1076752 .5621433 0.19 0.850 -1.050081 1.265431 | realpcgdp_5yago_bn | .0309591 .0211014 1.47 0.155 -.0125001 .0744183 gfcf_nomgdp | .2013728 .0805251 2.50 0.019 .0355283 .3672173 prim_enrol | .0969751 .0289507 3.35 0.003 .0373501 .1566001 cpi_ep_inflatn | -.1490856 .0699263 -2.13 0.043 -.2931015 -.0050697 depratio | -.0002485 .0571743 -0.00 0.997 -.1180011 .1175041 open_gdp | .0272978 .023562 1.16 0.258 -.0212292 .0758247 globalgthpc | .7846087 .2894573 2.71 0.012 .1884603 1.380757 oiltrdbal_gdp | .061986 .079659 0.78 0.444 -.1020748 .2260467 oiltrdbal_gdp_5y | .0130573 .1709793 0.08 0.940 -.339081 .3651957 gth_commexp_prind | .0252099 .0140975 1.79 0.086 -.0038245 .0542443 crisis_dummy | .134008 .9356604 0.14 0.887 -1.793021 2.061037 moderation_dummy | .8694931 .6094907 1.43 0.166 -.3857765 2.124763 recovery_dummy | .5936562 .6663803 0.89 0.381 -.7787797 1.966092 _cons | -14.92877 6.315646 -2.36 0.026 -27.93609 -1.921454 -------------------+---------------------------------------------------------------- sigma_u | 2.7801935 sigma_e | 2.6945358 rho | .51564218 (fraction of variance due to u_i) ------------------------------------------------------------------------------------
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