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Hi,
Sorry to bother you again. I already have the panel data and my supervisor asked me to choose the fixed effect . however when I choose fixed effect, it said near singular matrix. The attached below is my file
Thank you so much.

Usually it means that one of your variables is time invariant so that it is perfectly collinear with the effects.

A quick check of your workfile shows that DUM3 is time invariant.

Could you please specify it? Because I want to test whether the 5 dummy effect my resull
How can I fixed the problem
Thank you so much

Dum3 is for the countries in EU region

The only think you can do is to leave DUM3 out of the equation. The coefficient on DUM3 is not identified in the fixed effects specification.

Thank You Glenn, so the others dummy can use for fixed effect, except the dummy3
regards

I didn't check them. Possibly. Try it.

Hi Glenn,
I try to create another dummy variable today
Dum1=1 if the countries are greece, ireland, portugal, spain, france, germany otherwise denote eu countries
dum3=1 if the countries are uk,us, denmark, sweden, australia, canada. denote non eu countries
and dum2=1 if countries are greece, ireland, portugal,spain denote for debt crisis countries
when I estimate equation,
rsquared c dum1 dum2 dum3, it say nonsingular matrix. i think the problem is between dum1 and dum3. if I put dum1 and dum3 together i can not run equation
how can I fixed it
I attached my file below.
Thank you very much

You need to leave out either DUM1 or DUM3. Do a Google (or even a forum search) on the "dummy variable trap."