near singular matrix error (dummy variable trap)


Im running a regression in eviews and have 11 dummy variables for 12 different industries. As i already dropped one i do not understand why i am reviewing a "near singular matrix error" (eviews) indicating perfect colinearity . Futher, I eliminated another 4 dummy variables to finally get to an result. Any ideas what i can do about that if i want to control for the 12 industries?

Thank you very much in advance


Phineas Packard
Something is wrong here. Could you give more information on the model. Is it possible that you accidently have a linear combination of variables in your model somewhere.