# Controlling for variables in pooled OLS estimation in EViews

I am working on the Chinese economy and my topic of research is how external political instability can affect Chinese exports. So I want to estimate the Chinese export demand function for 1988-2011 with more than 130 countries. I want to estimate the regression equation given below. \begin{align} \log(\mathrm{export})_{it} &= \beta_0+ \beta_1 \log(\mathrm{real gdp})_{it}+ \beta_2 \log(\mathrm{population})_{it} \\ &\quad+ \beta_3\mathrm{political stability}_{it}+ \beta_4\mathrm{realexchange rate}_{it}+ \varepsilon_{it} \end{align} Where $\log(\mathrm{export})_{it}$ is the (log) of the export from china to other countries and $t=1988, \ldots, 2011$.

According to economic theory, the export of a country depends not only domestic GDP and population but also on the GDP and population of other countries. In my research, I want to control for the effect of Chinese GDP and population on Chinese export in EViews in a pooled OLS estimation but I don't know how to do this. If i do not control these two variables I can run a pooled OLS estimation in EViews. Any help is greatly appreciated.

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This is a big question, but it is also a fairly standard econometric problem (longitudinal panel data at a country level). Which texts have you read on how to do this, and what in particular is causing you problems? –  Peter Ellis Dec 3 '12 at 5:22
thanks PETER for quick answer.my problem is how to control effect of chinese gdp and population on Chinese export.because when we run pool OLS in e-views we use this command (ln(rgdp)_?)so eviews pick chinese gdp also as independent variable.i want that in my research he take the rgdpof all other countries as independent variable but not include chinese gdp(control variable).so that i can observe that how change in other countries gdp can affect chinese export demand –  user17424 Dec 3 '12 at 6:46

\begin{align} \log(\mathrm{export})_{it} &= \beta_0+ \beta_1 \log(\mathrm{real gdp})_{it}+ \beta_2 \log(\mathrm{population})_{it} \\ &\quad+ \beta_3\mathrm{political stability}_{it}+ \beta_4\mathrm{realexchange rate}_{it}+ \beta_5\log(\mathrm{chinagdp})_{it}\\ &+\beta_6\log(\mathrm{chinapopn})_{it}+\varepsilon_{it} \end{align} Where $\log(\mathrm{export})_{it}$ is the (log) of the export from china to other countries and $t=1988, \ldots, 2011$.