I am analyzing the effect of LPI on export and import trade ( using panel data) when I ran OLS, the result was below
Code:
. reg lex lgdp dis ll0 landlocked, cluster(country1)
note: landlocked omitted because of collinearity
Linear regression Number of obs = 156
F(3, 19) = 125.91
Prob > F = 0.0000
R-squared = 0.8903
Root MSE = .57966
(Std. Err. adjusted for 20 clusters in country1)
------------------------------------------------------------------------------
| Robust
lex | Coef. Std. Err. t P>|t| [95% Conf. Interval]
-------------+----------------------------------------------------------------
lgdp | .8434597 .074269 11.36 0.000 .688013 .9989065
dis | -.7162724 .0859011 -8.34 0.000 -.8960654 -.5364794
ll0 | 1.771018 .588909 3.01 0.007 .5384175 3.003619
landlocked | 0 (omitted)
_cons | 3.902149 1.193095 3.27 0.004 1.404974 6.399325
------------------------------------------------------------------------------But when I ran RE and Fe the result was very different with OLS' result . All in RE and Fe, the result showed that LPI don't have any effect on export. More over , the result of F-test in fe and the p value Hausman test showed that Fe was best choice
Code:
. xtreg lex lgdp dis ll0 landlocked,fe
note: dis omitted because of collinearity
note: landlocked omitted because of collinearity
Fixed-effects (within) regression Number of obs = 156
Group variable: country1 Number of groups = 20
R-sq: Obs per group:
within = 0.2828 min = 4
between = 0.7417 avg = 7.8
overall = 0.6698 max = 8
F(2,134) = 26.41
corr(u_i, Xb) = -0.9032 Prob > F = 0.0000
------------------------------------------------------------------------------
lex | Coef. Std. Err. t P>|t| [95% Conf. Interval]
-------------+----------------------------------------------------------------
lgdp | 2.068337 .2848885 7.26 0.000 1.504877 2.631797
dis | 0 (omitted)
ll0 | -.861858 1.238365 -0.70 0.488 -3.311128 1.587412
landlocked | 0 (omitted)
_cons | -9.631277 2.850162 -3.38 0.001 -15.2684 -3.994153
-------------+----------------------------------------------------------------
sigma_u | 2.2327644
sigma_e | .4243563
rho | .96513702 (fraction of variance due to u_i)
------------------------------------------------------------------------------
F test that all u_i=0: F(19, 134) = 27.17 Prob > F = 0.0000Code:
. . xtreg lex lgdp dis ll0 landlocked,re
note: landlocked omitted because of collinearity
Random-effects GLS regression Number of obs = 156
Group variable: country1 Number of groups = 20
R-sq: Obs per group:
within = 0.2616 min = 4
between = 0.9389 avg = 7.8
overall = 0.8841 max = 8
Wald chi2(3) = 278.22
corr(u_i, X) = 0 (assumed) Prob > chi2 = 0.0000
------------------------------------------------------------------------------
lex | Coef. Std. Err. z P>|z| [95% Conf. Interval]
-------------+----------------------------------------------------------------
lgdp | .9661854 .0729139 13.25 0.000 .8232767 1.109094
dis | -.7608128 .1180357 -6.45 0.000 -.9921585 -.529467
ll0 | .7772783 .7426183 1.05 0.295 -.6782268 2.232783
landlocked | 0 (omitted)
_cons | 4.390683 1.316084 3.34 0.001 1.811206 6.97016
-------------+----------------------------------------------------------------
sigma_u | .43224225
sigma_e | .4243563
rho | .50920534 (fraction of variance due to u_i)
------------------------------------------------------------------------------Code:
. hausman fe re
---- Coefficients ----
| (b) (B) (b-B) sqrt(diag(V_b-V_B))
| fe re Difference S.E.
-------------+----------------------------------------------------------------
lgdp | 2.068337 .9661854 1.102151 .2753998
ll0 | -.861858 .7772783 -1.639136 .9909921
------------------------------------------------------------------------------
b = consistent under Ho and Ha; obtained from xtreg
B = inconsistent under Ha, efficient under Ho; obtained from xtreg
Test: Ho: difference in coefficients not systematic
chi2(2) = (b-B)'[(V_b-V_B)^(-1)](b-B)
= 19.30
Prob>chi2 = 0.0001Thanks so much
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