| * Import the data file from the folder (alter file path to your specific machine) | |
| import delimited "C:\Users\Christopher\Dropbox\Replications\Kollmeyer\data\finaldata_noNA.csv" | |
| * Create a STATA-required non-string value for countries | |
| encode country, gen(countrynum) | |
| * Setup the panel ID | |
| xtset countrynum | |
| * Set the time variable for the panel | |
| xtset countrynum year, yearly | |
| * Define National Affluence as in the paper | |
| gen NAff = gdp/pop | |
| * Define Imports from South as in the paper | |
| gen IMS = totalimport/(gdp*10000) | |
| * Define Exports to South as in the paper | |
| gen EXS = totalexport/(gdp*10000) | |
| * Detect outliers using Hadi outlier detection as in the paper | |
| hadimvo NAff IMS EXS unemp, gen(bad) | |
| * Command drops observations tagged as outliers | |
| drop if bad == 1 | |
| * Retain only the columns necessary for estimation | |
| drop country countryyear gdp pop totalimport totalexport bad | |
| * Include new 5-year time dummies to account for new observations added before 1970 | |
| gen DUM70to74 = 0 | |
| replace DUM70to74 = 1 if year >= 1970 & year <= 1974 | |
| * Generate 5-year time dummies as in the paper | |
| gen DUM75to79 = 0 | |
| replace DUM75to79 = 1 if year >= 1975 & year <= 1979 | |
| gen DUM80to84 = 0 | |
| replace DUM80to84 = 1 if year >= 1980 & year <= 1984 | |
| gen DUM85to89 = 0 | |
| replace DUM85to89 = 1 if year >= 1985 & year <= 1989 | |
| gen DUM90to94 = 0 | |
| replace DUM90to94 = 1 if year >= 1990 & year <= 1994 | |
| gen DUM95to99 = 0 | |
| replace DUM95to99 = 1 if year >= 1995 & year <= 1999 | |
| * Include new 5-year time dummies to account for new observations added after 2003 | |
| gen DUM00to04 = 0 | |
| replace DUM00to04 = 1 if year >= 2000 & year <= 2004 | |
| gen DUM05to09 = 0 | |
| replace DUM05to09 = 1 if year >= 2005 & year <= 2009 | |
| gen DUM10to14 = 0 | |
| replace DUM10to14 = 1 if year >= 2010 & year <= 2014 | |
| gen DUM15to18 = 0 | |
| replace DUM15to18 = 1 if year >= 2015 & year <= 2018 | |
| * Re-order panel according to year - required to enable the lag operator "L.x" | |
| sort countrynum year | |
| ** Uncomment the following set of commands to estimate the following FGLS model (without controls) and then verify the presence of serial autocorrelation in the residuals, spatial correlation, and groupwise heteroskedasticity: | |
| *xtgls NAff L.IMS L.EXS L.unemp i.countrynum DUM70to74 DUM75to79 DUM80to84 DUM85to89 DUM90to94 DUM95to99 DUM00to04 DUM05to09 DUM10to14 DUM15to18 | |
| *xtserial | |
| *xttest2 | |
| *xttest3 | |
| * Re-estimate the model controlling for autocorrelation w/in panels, cross-sectional correlation, and heteroskedasticity across panels | |
| xtgls NAff L.IMS L.EXS L.unemp i.countrynum DUM70to74 DUM75to79 DUM80to84 DUM85to89 DUM90to94 DUM95to99 DUM00to04 DUM05to09 DUM10to14 DUM15to18, panels(hetero) corr(psar1) force | |