* how are countries lagging behind in terms of long term growth behind the US
* you can download the PWT 9.0 data at: https://www.rug.nl/ggdc/productivity/pwt/
clear
cd "/Users/vojtabartos/Documents/4 Teaching/2021 Development Economics/Tutorials/Exercise 1/Data/PWT90/"
import delimited "pwt90.csv", delimiter(";") 
set more off

gen gdppp=rgdpe/pop
reshape wide gdppp rgdpe rgdpo pop emp avh hc ccon cda cgdpe cgdpo ck ctfp cwtfp rgdpna rconna rdana rkna rtfpna rwtfpna labsh delta xr pl_con pl_da pl_gdpo i_cig i_xm i_xr i_outlier cor_exp statcap csh_c csh_i csh_g csh_x csh_m csh_r pl_c pl_i pl_g pl_x pl_m pl_k, i(country) j(year)

drop if gdppp2005==. | gdppp1970==.
gen gdpppg1970_2005=gdppp2005/gdppp1970
generate oecd = (country=="Australia" | country=="Austria" | country=="Belgium" | country=="Canada" | country=="Chile" | country=="Denmark" | country=="Finland" | country=="France" | country=="Germany" | country=="Greece" | country=="Hungary" | country=="Iceland" | country=="Ireland" | country=="Israel" | country=="Italy" | country=="Japan" | country=="Republic of Korea" | country=="Mexico" | country=="Netherlands" | country=="New Zealand" | country=="Norway" | country=="Poland" | country=="Portugal" | country=="Spain" | country=="Sweden" | country=="Switzerland" | country=="Turkey" | country=="United Kingdom" | country=="United States")
generate africa = (country=="Benin" | country=="Botswana" | country=="Burundi" | country=="Cameroon" | country=="Central African Republic" | country=="D.R. of the Congo" | country=="Congo" | country=="C?te d'Ivoire" | country=="Gabon" | country=="Gambia" | country=="Ghana" | country=="Kenya" | country=="Lesotho" | country=="Liberia" | country=="Malawi" | country=="Mali" | country=="Mauritania" | country=="Mauritius" | country=="Mozambique" | country=="Namibia" | country=="Niger" | country=="Rwanda" | country=="Senegal" | country=="Sierra Leone" | country=="South Africa" | country=="Sudan (Former)" | country=="Swaziland" | country=="U.R. of Tanzania: Mainland" | country=="Togo" | country=="Uganda")
generate latam = (country=="Argentina" | country=="Bolivia" | country=="Brazil" | country=="Colombia" | country=="Costa Rica" | country=="Cuba" | country=="Dominican Republic" | country=="Ecuador" | country=="El Salvador" | country=="Guatemala" | country=="Guyana" | country=="Haiti" | country=="Honduras" | country=="Jamaica" | country=="Nicaragua" | country=="Panama" | country=="Paraguay" | country=="Peru" | country=="Trinidad &Tobago" | country=="Uruguay" | country=="Venezuela")

sum gdpppg1970_2005 if oecd
sum gdpppg1970_2005 if africa
sum gdpppg1970_2005 if latam

browse country gdppp1970 gdppp2005 if gdpppg1970_2005<1
browse country gdppp1970 gdppp2005 if gdpppg1970_2005>4
* alternatively, use Germany [59]
gen gdpppus1970=gdppp1970[151]
gen gdpppus2005=gdppp2005[151]

gen gdppp_rel_us_1970=100*(gdppp1970/gdpppus1970)
gen gdppp_rel_us_2005=100*(gdppp2005/gdpppus2005)

gen gdppp_rel_us_change=100*(gdppp_rel_us_2005/gdppp_rel_us_1970)

* population growth (annualized)
gen popgrowth1970_2005=exp(ln(pop2005/pop1970)/(2005-1970))-1

sort gdppp_rel_us_change


********************************************************
*** SHOW THIS TO STUDENTS
browse country gdppp_rel_us_1970 gdppp_rel_us_2005 gdppp_rel_us_change
********************************************************


*browse country gdppp_rel_us_1970 gdppp_rel_us_2005 gdppp_rel_us_change pop1970 pop2005 popgrowth1970_2005

sum gdppp_rel_us_change if oecd
sum gdppp_rel_us_change if africa
sum gdppp_rel_us_change if latam

gen loggdppp1970=log(gdppp1970)
gen loggdppp2005=log(gdppp2005)
*** AND SHOW HOW SOME COUNTRIES STUCK, WHILE SOME GROWING RAPIDLY
graph twoway (scatter loggdppp2005 loggdppp1970, ///
	yscale(nolog) xscale(nolog) ///
	mlabel(country) mlabgap(1) mlabpos(12) ///
	ytitle("ln(GDP) per person 2005") xtitle("ln(GDP) per person 1970"))  (function y=x, range(6 12)) //