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I have data on 25 countries for about 35 years. I want to estimate a POLS as I am not looking for a causal interpretation but just sttistical correlation between two phenomena. That's why I will not go for fixed effects.

1) Do you think that can be wrong?

Since the dependent variable is quite persistent,

2) does it make sense to estimate a dynamic pooled ols with lagged dependent variable? Or this can be omitted since I am not looking for causality?

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