version 6
clear
set memory 80m
set more off
capture log close
cd c:\documents\ellison
log using growth.log,replace
use growth.dta
**************************************
*Cross-section analysis (Barro, 1989)
**************************************
describe
sum
*Testing for absolute convergence
gen grow=(grow1+grow2+grow3+grow4+grow5)/5
reg grow gdp60,robust
reg grow gdp50,robust
*Testing for relative convergence
reg grow gdp60 pri1 sec1,robust
test pri1 sec1
reg grow gdp50 pri1 sec1,robust
test pri1 sec1
gen sgdp60=gdp60^2
gen sgdp50=gdp50^2
reg grow gdp60 sgdp60 pri1 sec1,robust
test pri1 sec1
*Other measures of human capital
gen pri=(pri1+pri2+pri3+pri4+pri5)/5
gen sec=(sec1+sec2+sec3+sec4+sec5)/5
gen high=(high1+high2+high3+high4+high5)/5
reg grow gdp60 pri sec high,robust
reg grow gdp60 teapri60,robust
reg grow gdp60 teasec60,robust
reg grow gdp60 teapri50,robust
reg grow gdp60 teasec50,robust
reg grow gdp60 hum1,robust
*The role of government
gen gov=(gov1+gov2+gov3+gov4+gov5)/5
gen edu=(edu1+edu2+edu3+edu4+edu5)/5
gen def=(def1+def2+def3+def4+def5)/5
gen invpub=(invpub1+invpub2+invpub3+invpub4+invpub5)/5
reg grow gdp60 pri1 sec1 gov,robust
reg grow gdp60 pri1 sec1 gov edu def invpub,robust 
*Political instability
gen ass=(ass1+ass2+ass3+ass4+ass5)/5
reg grow gdp60 pri1 sec1 gov revcoup war ass,robust
*The role of openness
reg grow gdp60 pri1 sec1 open,robust
reg grow gdp60 pri1 sec1 gov revcoup war ass open,robust
reg grow gdp60 pri1 sec1 barr,robust
reg grow gdp60 pri1 sec1 gov revcoup war ass barr,robust
*Africa and Latin America
reg grow gdp60 pri1 sec1 latin safrica,robust
reg grow gdp60 pri1 sec1 gov revcoup war ass open latin safrica,robust
drop grow pri sec high gov edu def invpub ass
******************************
*Panel Analysis (Barro, 1996)
******************************
*Controlling for fixed or random country-specific effect
*(between estimation in cross-section framework)
reshape long grow pri sec high hum gov edu def invpub ass coup rev rights civlib ex im,i(country) j(time)
iis country
tis time
sort country time
xtdes
xtsum
quietly by country: gen pri60=pri[1]
quietly by country: gen sec60=sec[1]
xtreg grow gdp60 pri60 sec60,fe
xtreg grow gdp60 pri60 sec60,re
reg grow gdp60 pri60 sec60,robust cluster(country)
xtreg grow gdp60 pri sec,fe
xtreg grow gdp60 pri sec,re
reg grow gdp60 pri sec,robust cluster(country)
xtreg grow gdp60 pri60 sec60 gov edu def invpub,fe
xtreg grow gdp60 pri60 sec60 gov edu def invpub,re
reg grow gdp60 pri60 sec60 gov edu def invpub,robust cluster(country)
xtreg grow gdp60 pri60 sec60 gov edu def invpub ass coup rev open,fe
xtreg grow gdp60 pri60 sec60 gov edu def invpub ass coup rev open,re
reg grow gdp60 pri60 sec60 gov edu def invpub ass coup rev open,robust cluster(country)
clear
log close