EViews.com

Problem solved.
Found a working paper of OECD, named New Horizons for Foreign Direct Investment, together with another paper from University of Copenhagen, named On the Causal Links between FDI and Growth in Developing Countries.

FYI I use TSLS

Hi all, I have a quick question. My estimation equation is like log(RGDP per capita)= F(FDI/GDP, w) w is other variables. Since the denominator of independent variable is the numerator of dependent variable, AKA RGDP, is there any paper talked about the problem it may have, or can anyone point out d...

anyone can help me with it?

Hi, anybody can help?

Hi everyone! No I want to find out the impact of FDIportion to ln(PCRGDP), but previous research has revealed a bidirectional relationship between them, so I am thinking introducing three dummies: d1 d2 d3 to proxy FDIportion. And also I introduce humancap popgrowth and ln(infrastructure) as control...

My advice would be to re-read your textbook material on TSLS (or instrumental variables). It sounds like you're not understanding your professor's concerns.

appreciate your help

the instruments MUST be the EXOGENOUS or PRE-DETERMINED variables in the structural equation plus perhaps other exogenous or pre-determined variables. You've got to decide which of the explanatory variables in the structural equation are exogenous or pre-determined. This is the key part of your pro...

Why do you think anything is wrong? thank you sir. I quote from my professor: "You still don't do 2SLS correctly. First off, there is no first stage. There is only a second stage, the first stage being estimated in the background. More importantly, the instruments MUST be the EXOGENOUS or PRE-...

Hi everyone, Now I am working on my paper, there is some problem with the Eviews specification input and instrument input. My structure equations are: 1. FDIportion=c+ln(PCRGDP)+dummy1+dummy2+dummy3 2. ln(PCRGDP)=c+FDIportion+humancap+popgrowth+ln(infrastructure) Q1:basically I want to avoid the bid...