*This do-file executes the analysis for "Normal Countries". You may want to run it in parts or save output to a log file.
use "C:\World Statistics\ncdata.dta", clear
*calculate the postcom countries share of total world population in 1988
xtset ccode year
replace totformcom = f.totformcom if year==1989
replace totformcom = f.totformcom if year==1988
gen tfcpop = totformcom*popwdi
bysort year: egen totfcompop = total(tfcpop)
gen tfcpopmil = totfcompop/100
mean indva if totformcom==1&year==1990
mean indva if totformcom==1&year==2012
mean servva if totformcom==1&year==1990
mean servva if totformcom==1&year==2012
*In no other region has international trade grown as fast, with exports plus imports soaring from 75 to 114 percent of GDP on average.
*USE 2011 instead of 2012, because the change variable now has 22 noncommunist countries instead of 17.
xtset ccode year
gen trade11 = tradegdp
replace trade11=. if year~=2011
gen trade90 = tradegdp
replace trade90=. if year~=1990
bysort ccode: egen t90=max(trade90)
bysort ccode: egen t11=max(trade11)
gen trade9011 = t11 - t90
drop t90 t11
mean trade90 if year==1990&totformcom==1
mean trade11 if year==2011&totformcom==1
mean trade9011 if year==1990&totformcom==1
mean trade9011 if year==1990&LATAM==1
mean trade9011 if year==1990&WENAM==1
mean trade9011 if year==1990&MENA==1
mean trade9011 if year==1990&SUBSAH==1
mean trade9011 if year==1990&ASIA==1
mean trade9011 if year==1990&OCEANIA==1
*Whereas in most countries, more than 60 percent of GDP goes towards household final consumption, in Russia in 1990 less than one third did,
*and in Azerbaijan less than one quarter.
gsort csh_c
list country csh_c if year==1990, clean
*, the median postcommunist country (Uzbekistan) grew faster between 1990 and 2011 than the median country elsewhere in the world (Norway).
*While Norwegian GDP per capita increased by 45 percent, Uzbekistan’s rose 47 percent. Bosnia and Herzegovina—where income grew by more than
*five times—was the third fastest in the world between these years. Albania, which grew 134 percent, came 17th and Poland, growing 119 percent, 21st.
*All three outpaced such growth engines as Singapore and Hong Kong.
xtset ccode year
gen rgdpnapc = rgdpna*1000000/popwdi
*need to fill in rgdpnapc for Czech and Slovak in 1989 since this is missing.
*From EBRD Macroeconomic indicators, GDP per capita in 1989 was same as in 1990 in SR and was .012 higher in CR
xtset ccode year
replace rgdpnapc = f.rgdpnapc*1.012 if year==1989&country=="Czech"
replace rgdpnapc = f.rgdpnapc if year==1989&country=="Slovak"
*rgdpna in PWT 8.0 is Real GDP at constant 2005 national prices (in mil. 2005US$). We use this to calculate change over time.
xtset ccode year
gen rgdpna9011 = ((rgdpnapc/l21.rgdpnapc)-1)*100
replace rgdpna9011=. if year~=2011
bysort year: egen med9011rgdpnac = median(rgdpna9011) if totformcom==1
bysort year: egen med9011rgdpnanotc = median(rgdpna9011) if totformcom==0
list med9011rgdpnac if country=="Estonia" &year==2011, clean noobs
*This is median growth in the postcommunist countries
list med9011rgdpnanotc if country=="Canada"&year==2011, clean noobs
*This is median growth in the others
gsort -rgdpna9011
list country rgdpna9011 if year==2011&rgdpna9011~=., clean noobs
*PWT rgdpna, PWT population
xtset ccode year
gen rgdpnapc2 = rgdpna*1000000/pop
xtset ccode year
gen rgdpna90112 = ((rgdpnapc2/l21.rgdpnapc2)-1)*100
replace rgdpna90112=. if year~=2011
bysort year: egen med9011rgdpnac2 = median(rgdpna90112) if totformcom==1
bysort year: egen med9011rgdpnanotc2 = median(rgdpna90112) if totformcom==0
list med9011rgdpnac2 if country=="Estonia" &year==2011, clean noobs
*This is median growth in the postcommunist countries
list med9011rgdpnanotc2 if country=="Canada"&year==2011, clean noobs
*This is median growth in the others
gsort -rgdpna90112
list country rgdpna90112 if year==2011&rgdpna90112~=., clean noobs
*WDI gdppc in constant local currency units
xtset ccode year
gen gdpcon9011 = ((gdppcclcu/l21.gdppcclcu)-1)*100
replace gdpcon9011=. if year~=2011
bysort year: egen med9011conc = median(gdpcon9011) if totformcom==1
bysort year: egen med9011connotc = median(gdpcon9011) if totformcom==0
list med9011conc if country=="Estonia" &year==2011, clean noobs
*This is median growth in the postcommunist countries
list med9011connotc if country=="Canada"&year==2011, clean noobs
*This is median growth in the others
gsort -gdpcon9011
list country gdpcon9011 if year==2011&gdpcon9011~=., clean noobs
*WDI gdppc in constant local currency units to 2012
xtset ccode year
gen gdpcon9012 = ((gdppcclcu/l22.gdppcclcu)-1)*100
replace gdpcon9012=. if year~=2012
bysort year: egen med9012conc = median(gdpcon9012) if totformcom==1
bysort year: egen med9012connotc = median(gdpcon9012) if totformcom==0
list med9012conc if country=="Estonia" &year==2012, clean noobs
*This is median growth in the postcommunist countries
list med9012connotc if country=="Canada"&year==2012, clean noobs
*This is median growth in the others
gsort -gdpcon9012
list country gdpcon9012 if year==2012&gdpcon9012~=., clean noobs
*In the median postcommunist country, household final consumption per capita grew by 53 percent between 1990 and 2011, compared to a median increase of 45 percent
*elsewhere in the world. Consumption in Poland soared 146 percent, a rise that equaled Korea’s, while Russia’s consumption more than doubled, growing faster than
* in 82 percent of countries.
xtset ccode year
gen hconsna = csh_c*rgdpnapc
gen hconsna9011 = ((hconsna/l21.hconsna)-1)*100
replace hconsna9011=. if year~=2011
bysort year: egen medhconsna9011c = median(hconsna9011) if totformcom ==1
bysort year: egen medhconsna9011n = median(hconsna9011) if totformcom ==0
list medhconsna9011c if year==2011&country=="Estonia"
*this gives the median % change in household consumption per capita for former communist
list medhconsna9011n if year==2011&country=="Canada"
*this gives the median % change in household consumption per capita for countries that are not former communist
gsort -hconsna9011
list country hconsna9011 if year==2011&hconsna9011~=., clean noobs
tab hconsna9011
*Still, by 2012 inflation had stabilized almost everywhere and the annual rate had dropped below the world median. Unemployment moved towards the global average
*but still remained several percentage points higher.
gen inf12 = inf
replace inf12 = . if year~=2012
bysort year: egen medinf12c = median(inf12) if totformcom==1
bysort year: egen medinf12world = median(inf12)
list medinf12c if country=="Estonia"&year==2012, noobs clean
*this is median inflation rate in postcommmunist countries
list medinf12world if country=="Canada"&year==2012, noobs clean
*this is world median
list country inf if year==2012&totformcom==1, noobs clean
gen unemp12 = unemp
replace unemp12=. if year~=2012
bysort year: egen medunem12c = median(unemp12) if totformcom==1
bysort year: egen medunem12world = median(unemp12)
list medunem12c if country=="Estonia"&year==2012, noobs clean
list medunem12world if country=="Canada"&year==2012, noobs clean
bysort year: egen medunpc = median(unemp) if totformcom==1
bysort year: egen medunworld = median(unemp)
list year medunpc if country=="Estonia"&year>1989, noobs clean
*this is median unemployment rate in postcommmunist countries by year
list year medunworld if country=="Canada"&year>1989, noobs clean
*this is world median by year
list country unemp if year==2012&totformcom==1, noobs clean
*Cars per capita from UNECE (supplemented from WDI and Tajik Statistical Agency)
mean(carsunece) if year==1993, over (totformcom)
mean(carsunece) if year==2011, over (totformcom)
gsort carsunece
list year country carsunece if (year==2010&carsunece~=.)|(year==2011&carsunece~=.), clean noobs
*The number of phone lines per capita grew twice as fast as elsewhere, edging past Latin America.
xtset ccode year
gen tellines9012 = tellines - l22.tellines
replace tellines9012=. if year~=2012
mean(tellines9012) if year==2012, over(totformcom)
mean(tellines) if year==2012, over(totformcom)
mean(tellines) if year==2012, over(LATAM)
*By 2013, cellphone subscriptions per person, at 1.24, had overtaken the West.
mean (mobile2013) if year==2013, over(totformcom)
mean (mobile2013) if year==2013, over(WENAM)
*I treat "Western Europe and North America" as representing the West
*Internet users—averaging 54 percent of the population—are more widespread in the postcommunist world today than in any region except Western Europe and North America.
mean(internet2013) if year==2013, over(totformcom)
mean(internet2013) if year==2013, over(LATAM)
mean(internet2013) if year==2013, over(WENAM)
mean(internet2013) if year==2013, over(MENA)
mean(internet2013) if year==2013, over(SUBSAH)
mean(internet2013) if year==2013, over(ASIA)
mean(internet2013) if year==2013, over(OCEANIA)
*In 2012, residents of these countries made at least 102 million international tourist trips.
gen it10mill = inttourdeps2010/1000000
list country it10mill if year==2010&totformcom==1, clean noobs
bysort totformcom: egen sumit10 = sum(it10mill) if year==2010
list sumit10 if year==2010&country=="Estonia", clean noobs
*Access to tertiary education, already high, surged even more after 1989, increasing by 33 percentage points on average. By 2012,
*more secondary school graduates enrolled in higher education in the average postcommunist country than did so in Switzerland.
gen tert90 = tert
replace tert90=. if year~=1990
mean (tert90) if year==1990, over(totformcom)
xtset ccode year
gen tert9012 = tert - l22.tert
replace tert9012=. if year~=2012
mean(tert9012) if year==2012, over(totformcom)
mean(tert) if year==2012&totformcom==1
list tert if year==2012&country=="Switzerland"
*Poverty often increased in the early transition, along with income inequality. But in recent years both the poverty rate and
*the Gini coefficient were significantly lower in the postcommunist countries than in others at comparable income levels.
*These regressions show that, controlling for the log of income, the former communist dummy has a significant negative effect on both poverty and inequality levels.
*avgininet0812 is the average of estimates of the country's gini index
gen lngdp = ln(gdppcpp11)
reg pov0913 lngdp totformcom if year==2012, robust
reg avgininet0812 lngdp totformcom if year==2012, robust
*On average, however, life expectancy rose from 69 years in 1990 to 73 years in 2012.
*The speed of improvement was nearly twice as fast as in the communist 1980s.
gen lifeex9012 = lifeexp - l22.lifeexp
replace lifeex9012=. if year~=2012
gen lifeex8090 = lifeexp - l10.lifeexp
replace lifeex8090=. if year~=1990
mean lifeexp if year==1990, over(totformcom)
mean lifeexp if year==2012, over(totformcom)
mean lifeex9012, over(totformcom)
mean lifeex8090, over(totformcom)
*Rate in 1990-2012 = 4.06/22 = .185
*Rate in 1980-90 = 1.13/10 = .113
*Infant mortality, already low, fell faster in percentage terms than in any other world region.
xtset ccode year
gen infmor9012 = ((infmor/l22.infmor)-1)*100
replace infmor9012=. if year~=2012
gen infmor90 = infmor
replace infmor90=. if year~=1990
mean(infmor90), over(totformcom)
mean(infmor9012) if year==2012&totformcom==1
mean(infmor9012) if year==2012&LATAM==1
mean(infmor9012) if year==2012&WENAM==1
mean(infmor9012) if year==2012&ASIA==1
mean(infmor9012) if year==2012&SUBSAH==1
mean(infmor9012) if year==2012&MENA==1
mean(infmor9012) if year==2012&OCEANIA==1
mean(infmor) if year==1990&totformcom==1
mean(infmor) if year==2012&totformcom==1
*However, average alcohol consumption fell between 1990 and 2012—from 7.9 to 7.5 liters of pure alcohol a year per resident aged over 14.
xtset ccode year
mean (alc1990) if year==1990, over(totformcom)
mean (alc2010) if year==2010, over(totformcom)
gsort alc2010
list country alc2010 if year==2010, clean noobs
*Smoking among adult males was high—42 percent on average—but about the same as in Asia.
*percent of adult males who smoked, 2011, from WDI august 2014
mean smoke11 if year==2011, over(totformcom)
mean smoke11 if year==2011, over(LATAM)
mean smoke11 if year==2011, over(WENAM)
mean smoke11 if year==2011, over(MENA)
mean smoke11 if year==2011, over(SUBSAH)
mean smoke11 if year==2011, over(ASIA)
mean smoke11 if year==2011, over(OCEANIA)
*Polity2
*The most common measure—the Polity2 index—rates countries on a scale, which we adjusted to run from 0 (“pure dictatorship”) to 100 (“pure democracy”). In 1988, the regimes of Eastern Europe, the Soviet Union, and Mongolia scored from 5 (Albania) to 40 (Hungary), averaging 20, around the ratings of Egypt and Iran.
*For countries as economically developed as they were, their political systems were abnormally authoritarian.
replace pol2norm=pol2norm*100
mean(pol2norm) if year==1988&totformcom==1
gsort pol2norm
list country pol2norm if year==1988, clean noobs
xtset ccode year
reg pol2norm f2.lngdp totformcom if year==1988, rob
*After the popular revolutions of 1989-91, the average shot up to +3.7 in 1993 and +5.3 in 2013.
*Democracy was surging worldwide in these years. But in the postcommunist countries, it surged faster.
*Today, the average postcommunist country is exactly as democratic as its income level would predict.
mean(pol2norm) if year==1993&totformcom==1
mean(pol2norm) if year==2013&totformcom==1
gen pol8813 = polity2 - l25.polity2
replace pol8813=. if year~=2013
mean pol8813 if year==2013, over(totformcom)
reg pol2norm l.lngdp totformcom if year==2013, rob
*Of 29 postcommunist countries, 22 are rated “democracies” (Polity2 of 6 or higher), and six are “pure democracies” (Polity2 of 10).
gsort pol2norm
list country pol2norm if year==2013 &totformcom==1, clean noobs
*Notwithstanding the conflicts in Yugoslavia and Chechnya, postcommunist countries were not more likely than others to experience war or civil war during these decades.
mean(civilwar) if year>1989&year<2008, over(totformcom)
mean(interstatewar) if year>1989&year<2008, over(totformcom)
*Nor did they have a significantly higher rate of deaths in war or guerrilla violence, either in absolute numbers or per capita.
replace batdeath=0 if batdeath==.
gen batdeathpc = batdeath*1000000/pop
xtset ccode year
replace batdeathpc = batdeath*1000000/l.pop if year==2012
replace batdeathpc=0 if batdeath==.
mean batdeath if year>1988&year<2014, over(totformcom)
mean batdeathpc if year>1988&year<2014, over(totformcom)
*In 2010-13, a smaller proportion (23 percent) reported paying a bribe in the postcommunist states on average than in others (28 percent).
*For their levels of economic development, their reported corruption levels were absolutely typical.
mean (gcb1013) if year==2010, over(totformcom)
reg gcb1013 lngdp totformcom if year==2010, rob
*Worldwide, 84 percent reported being “very” or “quite” happy. In the average postcommunist country, it was 81 percent. For their income levels,
*they were about as happy as one would expect.
mean (hap1014) if year==2010, over(totformcom)
mean (hap1014) if year==2010
reg hap1014 lngdp totformcom if year==2010, rob
*The structures of their economies, consumption patterns, reported corruption levels, and political systems are all normal for their income levels.
reg servva lngdp totformcom if year==1990, robust
reg servva lngdp totformcom if year==2012, robust
reg agricva lngdp totformcom if year==1990, robust
reg agricva lngdp totformcom if year==2012, robust
reg indva lngdp totformcom if year==1990, robust
reg indva lngdp totformcom if year==2012, robust
gen tourpop10 = inttourdeps2010*100/pop
reg tourpop10 lngdp totformcom if year==2010, robust
reg csh_c lngdp totformcom if year==2011, rob
reg polity2 lngdp totformcom if year==2012, robust
reg gcb1013 lngdp totformcom if year==2012, robust
*Their citizens enroll in higher education at higher rates, buy more mobile phone subscriptions, and use the internet more than in comparably developed countries.
*Their health systems inoculate more children and prevent infant mortality more effectively. Measured poverty and inequality are lower.
reg tert lngdp totformcom if year==2012, robust
reg mobile2013 lngdp totformcom if year==2012, robust
reg internet2013 lngdp totformcom if year==2012, robust
reg measles lngdp totformcom if year==2012, robust
reg infmor lngdp totformcom if year==2012, robust
reg pov0913 lngdp totformcom if year==2012, robust
reg avgininet0812 lngdp totformcom if year==2012, robust
*Unemployment remains several percentage points “too high.” Postcommunist citizens smoke and drink more than typical for countries with their GDP per capita.
*(Since alcohol consumption increases with national income, this actually makes them look more developed than they are.)
*Such vices notwithstanding, life expectancy is on average exactly as high as income would predict.
reg unemp2012 lngdp totformcom if year==2012, robust
reg smoke11 lngdp totformcom if year==2012, robust
reg alc2010 lngdp totformcom if year==2012, robust
reg lifeexp lngdp totformcom if year==2012, robust
*They express less trust in government (although not in ordinary people) and greater dissatisfaction with their jobs,
*living standards, education and healthcare systems.
reg trustpeople lngdp totformcom if year==2012, robust
reg trustgov lngdp totformcom if year==2012, robust
reg sateduc lngdp totformcom if year==2012, robust
reg sathlthcare lngdp totformcom if year==2012, robust
reg satliving lngdp totformcom if year==2012, robust
reg satjob lngdp totformcom if year==2012, robust
reg satsafety lngdp totformcom if year==2012, robust
*Their suicide rates, although they are now lower than they were under late communism, remain relatively high.
mean (sui8789) if year==2010, over(totformcom)
mean (sui0712) if year==2010, over(totformcom)
*Why is Poland today a liberal free-market democracy whose income has more than doubled since 1990, while Turkmenistan has become
* a sultanistic petrostate with an economy rated less free than Yugoslavia’s under late communism?
list country polity2 if year==2013&(country=="Poland"|country=="Turkmenistan")
*growth of gdp per capita in percent 1990 - 2011
list country rgdpna9011 if year==2011&country=="Poland"
*EBRD score for Yugoslavia in 1989: 1 is lowest, 4.33 is highest.
list country ebrd if year==2011&(country=="Poland"|country=="Turkmenistan")
list country ebrd if year==1989&country=="Serbia"
*We define as radical reformers those who had increased their EBRD score by 40 points on a 100-point scale by the end of the third year after start of transition
xtset ccode year
gen transyear=.
replace transyear=1989 if ee==1
replace transyear=1990 if formyug==1|country=="Mongolia"
replace transyear=1991 if fsu==1
gen ebrd2 = (ebrd-1)/3.33
gen debrd2 = ebrd2-l.ebrd2
gen debrd2trans3 = .
replace debrd2trans3 = ebrd2 - l3.ebrd2 if year==transyear+3
bysort ccode: egen ebtyplus3 = max(debrd2trans3)
gen dum = .
replace dum=2 if ebtyplus3>.40&ebtyplus3<.
replace dum=1 if ebtyplus3>.25&ebtyplus3<.40
replace dum=0 if ebtyplus3<.25
*2: radical reformers, 1: gradual reformers, 0: slow reformers
*Make a trans year GDP per capita index. Use PWT, rgdpnapc
gen tyg = rgdpnapc
replace tyg = . if year~=transyear
bysort ccode: egen transyeargdp = max(tyg)
gen rgdppcnaindty = rgdpnapc*100/transyeargdp
replace rgdppcnaindty =. if year2009
*By the late 1990s, countries that had embraced radical reform were visibly outperforming those that had delayed.
bysort year: egen medrindrad = median(rind) if dum==2
bysort year: egen medrindgrad = median(rind) if dum==1
bysort year: egen medrindslow = median(rind) if dum==0
replace medrindrad = . if year > 2009
replace medrindgrad = . if year > 2009
replace medrindslow = . if year > 2009
list year medrindrad if year==1999&country=="Estonia", noobs clean
list year medrindgrad if year==1999&country=="Moldova", noobs clean
list year medrindslow if year==1999&country=="Turkmenistan", noobs clean
*The “radical reformers,” by this definition, were Poland, Hungary, the Czech and Slovak Republics, Estonia, Latvia, Lithuania, Russia, and Kyrgyzstan.
gsort ebty
list country dum if year==2012&totformcom==1, clean noobs
*Figure 1 shows the path of output for the median radical, gradual, and slow reforming countries over the first 21 years of transition.
*Data for the graph produced as follows
xtset ccode year
list year medrindrad medrindgrad medrindslow if year>1988&year<2010 & (country=="Estonia"|country=="Moldova"|country=="Turkmenistan"), clean noobs
*The difference is substantial. If we add up the “total loss before recovery”—that is, the area between the horizontal 100-percent line and each curve—the loss
*for the gradualists is about 40 percent greater—and that for the slow reformers about 140 percent greater—than that for the radical reformers (each measured
*relative to initial output).
gen gaprad = 100-medrindrad
replace gaprad=. if gaprad<0
gen gapgrad = 100-medrindgrad
replace gapgrad=. if gapgrad<0
gen gapslow = 100-medrindslow
replace gapslow=. if gapslow<0
bysort ccode: egen totlossrad = sum(gaprad)
bysort ccode: egen totlossgrad = sum(gapgrad)
bysort ccode: egen totlossslow = sum(gapslow)
list totlossrad totlossgrad totlossslow if year==2000 & (country=="Estonia"|country=="Moldova"|country=="Turkmenistan"), clean noobs
* totlossgrad (196.998) is about 1.44 times totlossrad (136.882); totlossslow (329.011) is about 2.4 times totlosrad (136.882).
*Had the median gradual reformer perfomed as well as the median radical reformer over these 21 years, it would have generated additional output
*equal to 1.4 times its transition year output.
*total output for both medians
bysort ccode: egen totoutrad = sum (medrindrad)
bysort ccode: egen totoutgrad = sum (medrindgrad)
list totoutrad totoutgrad if year==2000 & (country=="Estonia"|country=="Moldova"), clean noobs
*2258 - 2114 = 144; so total output of the median radical reformer is 1.44 transition year outputs greater than that of the median gradual reformer.
*Radical reformers also did much better if one considers household consumption instead of income,
*Make a trans year household consumption per capita index.
gen tyh = hconsna
replace tyh = . if year~=transyear
bysort ccode: egen transyearhconsna = max(tyh)
gen hconsnaindty = hconsna*100/transyearhconsna
replace hconsnaindty =. if year 2009
replace medhindgrad = . if year > 2009
replace medhindslow = . if year > 2009
xtset ccode year
list year medhindrad medhindgrad medhindslow if year>1988&year<2010 & (country=="Estonia"|country=="Moldova"|country=="Turkmenistan"), clean noobs
*they also tended to bring down inflation faster.
xtset ccode year
gen infty = inf
replace infty = f.inf if formyug==1|mongolia==1
replace infty = f2.inf if fsu==1
*this gives inflation rate with 1989 set as transition year for all.
bysort year: egen medinftyrad = median(infty) if dum==2
bysort year: egen medinftygrad = median(infty) if dum==1
bysort year: egen medinftyslow = median(infty) if dum==0
xtset ccode year
list year medinftyrad medinftygrad medinftyslow if year>1988&year<2010 & (country=="Estonia"|country=="Moldova"|country=="Turkmenistan"), clean noobs
gen gap = 100-rind
replace gap=. if gap<0
bysort ccode: egen totl = sum(gap)
gsort ebty
list country dum totl if year==2000 & totformcom==1, clean noobs
*Controlling for a country’s own characteristics, the richer, more democratic, and more economically liberal its non-communist neighbors were in 1990,
*the more the country developed, democratized, and marketized its economy over the next two decades.
*income
gen rgdpepc = rgdpe*1000000/pop
xtset ccode year
reg rgdpna9011 l21.rgdpepc l21.neigrgdpepcnochn if year==2011
*polity
replace polity2=-5 if formyugo==1&year==1990
replace polity2=0 if fsu==1&year==1990
replace polity2 = 8 if ccode==316&year==1990
replace polity2 = 8 if ccode==317&year==1990
xtset ccode year
gen dpol8810 = polity2-l22.polity2
replace dpol8810 = . if year~=2010
gen dpol9010= polity2 - l20.polity2
replace dpol9010=. if year~=2010
reg dpol9010 l20.polity2 neigpol90 if year==2010, rob
*market freedom
*neighbor effects with just non-Soviet bloc neighbors (i.e. including China)
xtset ccode year
gen debrd8910 = ebrd2-l21.ebrd2
replace debrd8910=. if year~=2010
reg debrd8910 l21.ebrd2 nbrefind85 if year==2010, rob
*nbrefind85 is the average value of Fraser Institute index of economic freedom among nearest non-communist neighbor(s) in 1985
*Convergence toward the neighbors shows up in more subtle ways as well—for instance, in rates of college enrolment,
*alcohol consumption, and even life expectancy.
*tertiary enrolment
replace tert = 16 if country=="Slovak Republic" &year==1990
*figure for Czech republic in 1990
replace tert = 33 if country=="Germany" &year==1990
*figure for 1991
replace tert = 32.41 if country=="Serbia" &year==1990
*From National Commission for UNESCO, Development of Education in the FR of Yugoslavia, 1990-91, UNESCO: 1993, p.68 (www.ibe.unesco.org/.../Yugoslavia/nr_mf_yu_1992_e.pdf)
replace tert = 32.41 if country=="Bosnia and Herzegovina" &year==1990
*Figure for Yugoslavia, from above
replace tert = 37 if country=="Georgia" &year==1990
*figure for 1991
replace tert = 16 if country=="Iran, Islamic Rep." &year==1990
*figure for 1995
*interpolate missing values
bysort ccode: ipolate tert year, generate (tert1)
drop tert
rename tert1 tert
xtset ccode year
gen dtert = tert - l20.tert
replace dtert=. if year~=2010
reg dtert l20.tert l20.neigtert if year==2010, rob
*alcohol consumption
gen dalc = alc2010- alc1990
replace dalc=. if year~=2010
reg dalc alc1990 nbralc90nochn if year==2010, rob
*life expectancy.
xtset ccode year
gen dlife = lifeexp - l20.lifeexp
replace dlife=. if year~=2010
reg dlife l20.lifeexp l20.neiglifenochn if year==2010, rob
*Since then, Russia’s GDP per capita has increased another 39 percent and its internet penetration has quadrupled, overtaking Greece.
list year gdppcclcu if country=="Russian Federation" &year>2003, clean noobs
*89147/64300 = 1.39
*Perhaps surprisingly, if one plots countries’ Polity2 scores against their income, Russia still lies only slightly below the regression
*line. It scores a 4 in 2013, on a par with Venezuela and Sri Lanka, while the average Polity2 rating for countries with income between $15,000 and $25,000 is 4.9.
list country gdppcpp11 polity2 if year==2013, clean noobs
*produces data for the plot.
*another way to see this is to regress polity on gdppcpp11 with dummy for Russia
gen russia = 0
replace russia=1 if country=="Russian Federation"
reg polity2 gdppcpp11 russia if year==2013, rob
*This shows Russia is .66 points "too low" on the 21 point scale.
mean(polity2) if gdppcpp11>15000&gdppcpp11<25000&year==2013
*Only three groups of countries are wealthier than Russia today: developed democracies; oil-rich dictatorships,
*mostly in the Persian Gulf; and commercial city states such as Singapore and Macau.
gsort polity2
list country polity2 gdppcpp11 if gdppcpp11>23564&gdppcpp11<.&year==2013, noobs clean
list country polity2 gdppcpp11 if gdppcpp11>23564&gdppcpp11<.&year==2012, noobs clean