Dear all.

My name is Carlos and I am working in a gravity model with 133 countries in a time period of 14 years. I am writing you after reading many statalist post to find an answer to my question but I could not find it. The question is about why I got different results with XTREG and REGHDFE estimation. I have tried what some people recommended in the statalist forums but results are still differents.

My intention is to apply Time invariant fixed effects to my estimation. I typed it and I got the following results:

xtreg log_x log_distw log_gdp_o log_gdp_d log_gdpcap_o log_gdpcap_d contig colony comlang_ethno sibling fta_wto log_exchange_rate_o log_exchange_rate_d _Iexp_TIFE* _Iimp_TIFE*


Array

reghdfe log_x log_distw log_gdp_o log_gdp_d log_gdpcap_o log_gdpcap_d contig colony comlang_ethno sibling fta_wto log_exchange_rate_o log_exchange_rate_d, absorb(exp_TIFE imp_TIFE)

Array

I want to know what I am not doing correctly in order to get the same results. Specially because after that estimation I want to estimate it with Time variant fixed effects and Country pair fixed effects and I will need REGHDFE.

I will really appreciate your help.

Kind regards.

Carlos A.