I'm investigating the effect of FDI on Freedom and want to apply panel IV regression.
I use the plm
package. While I run the regression, it gives me the following error:
Error in plm.fit(formula, data, model, effect, random.method, random.models, :
insufficient number of instruments
I alterned the number of control variables but it didn´t work.
plm(FH~Lag_logUN_FDI_Stock_gdp+Lag_GDPpC+Lag_polity2+Lag_conflict+Lag_logtax+Lag_logresources+Lag_logtrade |.- Lag_logUN_FDI_Stock_gdp -Lag_logpopulation + Land ,data = pd_main)