Panel data, or longitudinal data, consists of repeated observations of the same entities—such as individuals, firms, or countries—over multiple time periods. In Stata, these datasets are typically analyzed using the xt suite of commands. 1. Data Preparation
| Variable | Coef. | Std. Err. | t | P>|t| | |----------|-------|-----------|----|----| | fdi | 0.098 | 0.018 | 5.44 | 0.000 | | trade | 0.006 | 0.002 | 3.00 | 0.003 | | gcf | 0.031 | 0.009 | 3.44 | 0.001 | | _cons | 6.892 | 0.189 | 36.46 | 0.000 | stata panel data
Before any analysis, Stata must know which variable identifies the panel (individual) and which identifies time. Panel data, or longitudinal data, consists of repeated
Crucial note: Time-invariant variables like educ drop out automatically. That's correct—FE uses only within-panel variation. Data Preparation
| Variable | Coef