Pooled OLS for gravity model

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Bryantt
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Joined: Wed May 10, 2017 6:47 am

Pooled OLS for gravity model

Postby Bryantt » Thu May 11, 2017 7:32 pm

Hi. I am new user of Eviews 9 and i am doing my final thesis about the gravity model of trade by using panel data.

I have 7 variables to estimate trade which including the two gdp variables, two distance variables(sea and air distance), openness, % of internet user and a dummy variables.

After i run my Pooled OLS test, the result seem like weird due to the Prob. of both of my sea and air distance(LSD and LAD) is 1.000.

Variable Coefficient Std. Error t-Statistic Prob.
LSD 3.65E-13 0.039238 9.31E-12 1.0000
LAD -9.32E-14 0.045804 -2.03E-12 1.0000

Why it become like this? Is it there have another way to key in the distance data? Sorry that i am very new to Eviews and i really don't know what is going on about this.

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