I am currently writing a dissertation on the effect of foreign aid on the human development index.

I am doing this via panel data - 46 countries between the years 2002 to 2017.

I am using the command -xtreg- however I am unsure whether to use fixed or random effects. I carried out the hausman test: -hausman fe re- and these are my results, but I am unsure how to interpret them and whether fixed or random should be used?

Test: Ho: difference in coefficients not systematic

chi2(8) = (b-B)'[(V_b-V_B)^(-1)](b-B)
= 51.56
Prob>chi2 = 0.0000
(V_b-V_B is not positive definite)