Or use xtreg, fe vce(cluster country) for cluster-robust inference.
Pooled OLS ignores the panel structure entirely, treating all observations as independent data points. regress y x1 x2 x3 Use code with caution.
For example, to estimate a fixed effects model: stata panel data
Understanding Panel Data in Stata: A Comprehensive Guide to Estimation, Diagnostics, and Interpretation
chi2(3) = 28.47, Prob > chi2 = 0.000 → Reject RE; choose FE. Or use xtreg, fe vce(cluster country) for cluster-robust
Result: F(1,29) = 14.72, Prob > F = 0.001 → Serial correlation present.
Do you suspect your model has issues with or reverse causality ? Or use xtreg
and decide whether to keep or impute missing values. Imputation methods such as multiple imputation or linear interpolation can be applied, but they must preserve the panel structure.