dummy variables in panel data

[franta311]

Hi Guys,

I am looking into variables that influence sovereign debt maturity choices. I have 12 independent variables (gdp per capita, inflation rate, corruption, etc..) and dependent variable - debt maturity. I analyze 42 countries in years 2000 - 2013.

Q: When running Fixed Effects regression in Eviews, do I have to create dummy variables for all 42 countries? if yes, how do I do it and why is it beneficial?

Thanks a lot!

Best

F.

[EViews Gareth]

No, just choose the fixed effects option and EViews will do the dummies for you.

[franta311]

Thanks!