i am working on a panel data of 144 countries for 16 years. In order to check for multicollinearity, i draw the correlation matrix,
| urban_~p depend~o pc_bc pc_gdp pop_de~y trade_~s hdi
-------------+---------------------------------------------------------------
urban_pop | 1.0000
dependency~o | -0.6242 1.0000
pc_bc | 0.0987 -0.0230 1.0000
pc_gdp | 0.6719 -0.5958 0.0152 1.0000
pop_density | 0.1584 -0.1987 -0.1135 0.2263 1.0000
trade_open~s | 0.2193 -0.3035 0.0139 0.3540 0.5020 1.0000
hdi | 0.7705 -0.8370 0.0848 0.7018 0.1447 0.2740 1.0000
where some of the values are greater than 0.5. then i performed vif
Variable | VIF 1/VIF
-------------+----------------------
hdi | 5.51 0.181649
dependency~o | 3.47 0.288403
urban_pop | 2.73 0.365965
pc_gdp | 2.30 0.434150
trade_open~s | 1.49 0.672098
pop_density | 1.39 0.721703
pc_bc | 1.04 0.958711
-------------+----------------------
Mean VIF | 2.56
All values are less than 10. So is there multicollinearity in my data?