I have log transform my model already, choose per capita variables but multicollinearity is still a problem.
I plan to drop the variable which has the highest vif (over 200)... however, I read somewhere that I will be subjected to specification error/bias.
I need to address this one since almost all of my variables were insignificant.
Are there any remedial measure that I could do to address this?
p.s. I also use first difference but all my variables shows that their all insignificant...

I plan to drop the variable which has the highest vif (over 200)... however, I read somewhere that I will be subjected to specification error/bias.
I need to address this one since almost all of my variables were insignificant.
Are there any remedial measure that I could do to address this?
p.s. I also use first difference but all my variables shows that their all insignificant...
