* note: without labour freedom which decimates the sample

* Figure 1
factor busin_free trade_free fiscal_free govt_size monet_free investm_free financ_free prop_rights free_corrupt, ipf
screeplot, mean

* Figure 2
factor  busin_free trade_free fiscal_free govt_size monet_free investm_free financ_free prop_rights free_corrupt, ipf factors(2)
rotate, oblimin oblique
loadingplot, xline(0) yline(0) aspect(1) note(oblimin oblique rotation) mlabposition(3) ytitle("Size of the State (Factor 2)") xtitle("Market Freedom (Factor 1)")

* Figure 3
predict oblim1_bart oblim2_bart, bartlett
label variable oblim1_bart "Market freedom"
label variable oblim2_bart "Size of the state sector (reverse order)"
scatter  oblim1_bart oblim2_bart if  GEM_countr==1, mlabel(country) mlabv(pos) legend(off) mcolor(gs8)

* Diagnostics
set more off
estat kmo
estat smc
estat structure