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Re: st: Xtreg is dropping dummy variable for OECD countries.
As you are using a fixed-effects model, identification occurs on the basis of
time-varying characteristics only. Since dummies do not change over time, Stata
drops them (remember that fixed-effects are essentially transforming all
variables into deviations from their average and that the impact of observable
characteristics that are fixed such as gender and location cannot be estimated).
Hope this helps,
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