IDEAS home Printed from https://ideas.repec.org/a/spr/jsecdv/v22y2020i1d10.1007_s40847-020-00093-2.html
   My bibliography  Save this article

Broad-based index for measurement of development

Author

Listed:
  • Sayel Basel

    (Sri Sathya Sai Institute of Higher Learning)

  • K. U. Gopakumar

    (Sri Sathya Sai Institute of Higher Learning)

  • R. Prabhakara Rao

    (Sri Sathya Sai Institute of Higher Learning)

Abstract

Measurement of development is important for economists, academicians and policy makers as it deals with broader issues such as satisfaction of basic human needs and goals, well-being, environment protection and of course economic growth. There have been several attempts to construct various indices for measuring development ever since the use of growth in GDP was found to be inadequate. While the use of composite indices was a significant step in this direction, the existing ones are widely criticized on its limited scope while capturing the various dimensions of development process. Moreover, they also lacked in its methodology of aggregation and weighting scheme, where equal weights for its components were taken in most of the cases. In this study, we make an attempt to construct a broad-based development index (BBDI) capturing the overall development process under various dimensions such as society, sustainability, economy and institutions. Apart from its wide coverage, our index is also different from the existing ones in terms of its weighting, where we have used principal component analysis for deriving the variable weights. BBDI is then aggregated for 102 countries measuring their development process from 1996 through 2015.

Suggested Citation

  • Sayel Basel & K. U. Gopakumar & R. Prabhakara Rao, 2020. "Broad-based index for measurement of development," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(1), pages 182-206, June.
    • Handle: RePEc:spr:jsecdv:v:22:y:2020:i:1:d:10.1007_s40847-020-00093-2
    DOI: 10.1007/s40847-020-00093-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40847-020-00093-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40847-020-00093-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Grupp, Hariolf & Schubert, Torben, 2010. "Review and new evidence on composite innovation indicators for evaluating national performance," Research Policy, Elsevier, vol. 39(1), pages 67-78, February.
    2. K. Siva Kiran Guptha & R. Prabhakar Rao, 2018. "The causal relationship between financial development and economic growth: an experience with BRICS economies," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 20(2), pages 308-326, October.
    3. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    4. repec:hal:wpspec:info:hdl:2441/5l6uh8ogmqildh09h4687h53k is not listed on IDEAS
    5. Grupp, Hariolf & Mogee, Mary Ellen, 2004. "Indicators for national science and technology policy: how robust are composite indicators?," Research Policy, Elsevier, vol. 33(9), pages 1373-1384, November.
    6. W. W. Rostow, 1959. "The Stages Of Economic Growth," Economic History Review, Economic History Society, vol. 12(1), pages 1-16, August.
    7. Ravallion, Martin, 1997. "Good and bad growth: The human development reports," World Development, Elsevier, vol. 25(5), pages 631-638, May.
    8. Joseph Stiglitz & Amartya K. Sen & Jean-Paul Fitoussi, 2009. "The measurement of economic performance and social progress revisited: Reflections and Overview," Working Papers hal-01069384, HAL.
    9. Barry R. Chiswick & Yinon Cohen & Tzippi Zach, 1997. "The Labor Market Status of Immigrants: Effects of the Unemployment Rate at Arrival and Duration of Residence," ILR Review, Cornell University, ILR School, vol. 50(2), pages 289-303, January.
    10. Joseph E. Stiglitz & Amartya Sen & Jean-Paul Fitoussi, 2009. "The measurement of economic performance and social progress revisited," Documents de Travail de l'OFCE 2009-33, Observatoire Francais des Conjonctures Economiques (OFCE).
    11. Ram, Rati, 1982. "Composite indices of physical quality of life, basic needs fulfilment, and income : A principal component representation," Journal of Development Economics, Elsevier, vol. 11(2), pages 227-247, October.
    12. Hicks, Norman & Streeten, Paul, 1979. "Indicators of development: The search for a basic needs yardstick," World Development, Elsevier, vol. 7(6), pages 567-580, June.
    13. Henry Kaiser, 1974. "An index of factorial simplicity," Psychometrika, Springer;The Psychometric Society, vol. 39(1), pages 31-36, March.
    14. Bhanojirao, V. V., 1991. "Human development Report 1990: Review and assessment," World Development, Elsevier, vol. 19(10), pages 1451-1460, October.
    15. Dejian Lai, 2003. "Principal Component Analysis on Human Development Indicators of China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 61(3), pages 319-330, March.
    16. Sen, Amartya, 1983. "Development: Which Way Now?," Economic Journal, Royal Economic Society, vol. 93(372), pages 742-762, December.
    17. repec:hal:spmain:info:hdl:2441/5l6uh8ogmqildh09h4687h53k is not listed on IDEAS
    18. Amal Ray, 2008. "Measurement of social development: an international comparison," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 86(1), pages 1-46, March.
    19. World Bank, 2019. "The World Bank Annual Report 2019 [Rapport annuel 2019 de la Banque mondiale]," World Bank Publications - Books, The World Bank Group, number 32333.
    20. Srinivasan, T N, 1994. "Human Development: A New Paradigm or Reinvention of the Wheel?," American Economic Review, American Economic Association, vol. 84(2), pages 238-243, May.
    21. Salvatore Greco & Alessio Ishizaka & Menelaos Tasiou & Gianpiero Torrisi, 2019. "On the Methodological Framework of Composite Indices: A Review of the Issues of Weighting, Aggregation, and Robustness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(1), pages 61-94, January.
    22. Atif Ansar & Bent Flyvbjerg & Alexander Budzier & Daniel Lunn, 2016. "Does infrastructure investment lead to economic growth or economic fragility? Evidence from China," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 32(3), pages 360-390.
    23. Anne Marie Goetz and Rob Jenkins, 2002. "Voice, Accountability and Human Development: The Emergence of a New Agenda," Human Development Occasional Papers (1992-2007) HDOCPA-2002-04, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    24. Desai, Meghnad, 1991. "Human development : Concepts and measurement," European Economic Review, Elsevier, vol. 35(2-3), pages 350-357, April.
    25. M. Saisana & A. Saltelli & S. Tarantola, 2005. "Uncertainty and sensitivity analysis techniques as tools for the quality assessment of composite indicators," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 168(2), pages 307-323, March.
    26. Currie-Alder, Bruce & Kanbur, Ravi & Malone, David M. & Medhora, Rohinton (ed.), 2014. "International Development: Ideas, Experience, and Prospects," OUP Catalogue, Oxford University Press, number 9780199671663.
    27. Magnus Lindelow, 2006. "Sometimes more equal than others: how health inequalities depend on the choice of welfare indicator," Health Economics, John Wiley & Sons, Ltd., vol. 15(3), pages 263-279, March.
    28. Frederik Booysen, 2002. "An Overview and Evaluation of Composite Indices of Development," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 59(2), pages 115-151, August.
    29. Niels Lind, 2004. "Values Reflected in the Human Development Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 66(3), pages 283-293, May.
    30. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cantone, Giulio Giacomo & Tomaselli, Venera, 2024. "On the Coherence of Composite Indexes: Multiversal Model and Specification Analysis for an Index of Well-Being," MetaArXiv d5y26, Center for Open Science.
    2. Siham Matallah, 2020. "Public service delivery, corruption and inequality: key factors driving migration from North Africa to the developed world," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(2), pages 328-354, December.
    3. Sayel Basel & R. Prabhakara Rao & K. U. Gopakumar, 2021. "Analysis of club convergence for economies: identification and testing using development indices," Asia-Pacific Journal of Regional Science, Springer, vol. 5(3), pages 885-908, October.
    4. Rexford Abaidoo & Elvis Kwame Agyapong, 2023. "Global food price volatility and inflationary pressures among developing economies," SN Business & Economics, Springer, vol. 3(10), pages 1-21, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Salvatore Greco & Alessio Ishizaka & Menelaos Tasiou & Gianpiero Torrisi, 2019. "On the Methodological Framework of Composite Indices: A Review of the Issues of Weighting, Aggregation, and Robustness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(1), pages 61-94, January.
    2. Greco, Salvatore & Ishizaka, Alessio & Tasiou, Menelaos & Torrisi, Gianpiero, 2018. "σ-µ efficiency analysis: A new methodology for evaluating units through composite indices," MPRA Paper 83569, University Library of Munich, Germany.
    3. Greco, Salvatore & Ishizaka, Alessio & Tasiou, Menelaos & Torrisi, Gianpiero, 2019. "Sigma-Mu efficiency analysis: A methodology for evaluating units through composite indicators," European Journal of Operational Research, Elsevier, vol. 278(3), pages 942-960.
    4. Cantone, Giulio Giacomo & Tomaselli, Venera, 2024. "On the Coherence of Composite Indexes: Multiversal Model and Specification Analysis for an Index of Well-Being," MetaArXiv d5y26, Center for Open Science.
    5. Sayel Basel & R. Prabhakara Rao & K. U. Gopakumar, 2021. "Analysis of club convergence for economies: identification and testing using development indices," Asia-Pacific Journal of Regional Science, Springer, vol. 5(3), pages 885-908, October.
    6. Greco, Salvatore & Ishizaka, Alessio & Tasiou, Menelaos & Torrisi, Gianpiero, 2019. "The Ordinal Input for Cardinal Output Approach of Non-compensatory Composite Indicators: The PROMETHEE Scoring Method," MPRA Paper 95816, University Library of Munich, Germany.
    7. Greco, Salvatore & Ishizaka, Alessio & Tasiou, Menelaos & Torrisi, Gianpiero, 2021. "The ordinal input for cardinal output approach of non-compensatory composite indicators: the PROMETHEE scoring method," European Journal of Operational Research, Elsevier, vol. 288(1), pages 225-246.
    8. Elizabeth Stanton, 2007. "The Human Development Index: A History," Working Papers wp127, Political Economy Research Institute, University of Massachusetts at Amherst.
    9. Miles Cahill & Nicolás Sánchez, 2001. "Using principal components to produce an economic and social development index: An application to Latin America and the U.S," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 29(3), pages 311-329, September.
    10. Mark McGillivray & Farhad Noorbakhsh, 2004. "Composite Indices of Human Well-being: Past, Present, and Future," WIDER Working Paper Series RP2004-63, World Institute for Development Economic Research (UNU-WIDER).
    11. Ridha Chkoundali & Houda Haffoudhi & Houda Abdenneji, 2011. "Institutional Sphere Contribution to Human Development: An Institutional Approach," Working Papers 629, Economic Research Forum, revised 09 Jan 2011.
    12. Leandro Prados de la Escosura, 2010. "Improving Human Development: A Long‐Run View," Journal of Economic Surveys, Wiley Blackwell, vol. 24(5), pages 841-894, December.
    13. Milica Maricic & Jose A. Egea & Veljko Jeremic, 2019. "A Hybrid Enhanced Scatter Search—Composite I-Distance Indicator (eSS-CIDI) Optimization Approach for Determining Weights Within Composite Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(2), pages 497-537, July.
    14. Berenger, Valerie & Verdier-Chouchane, Audrey, 2007. "Multidimensional Measures of Well-Being: Standard of Living and Quality of Life Across Countries," World Development, Elsevier, vol. 35(7), pages 1259-1276, July.
    15. Aalok Ranjan Chaurasia, 2019. "Empirics of Human Development in India,1990–2015," Indian Journal of Human Development, , vol. 13(2), pages 135-158, August.
    16. Aleksandra Maksimovska & Aleksandar Stojkov, 2019. "Composite Indicator of Social Responsiveness of Local Governments: An Empirical Mapping of the Networked Community Governance Paradigm," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(2), pages 669-706, July.
    17. Rahman, Tauhidur & Mittelhammer, Ronald C. & Wandschneider, Philip R., 2004. "A Latent Variable Mimic Approach To Inferring The Quality Of Life," 2004 Annual meeting, August 1-4, Denver, CO 20351, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Suman Seth & Antonio Villar, 2014. "Human Development, Inequality and Poverty: empirical findings," Working Papers 14.11, Universidad Pablo de Olavide, Department of Economics.
    19. Nicola Amendola & Giacomo Gabbuti & Giovanni Vecchi, 2023. "On some problems of using the Human Development Index in economic history," European Review of Economic History, European Historical Economics Society, vol. 27(4), pages 477-505.
    20. Jan Lorenz & Christoph Brauer & Dirk Lorenz, 2017. "Rank-Optimal Weighting or “How to be Best in the OECD Better Life Index?”," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(1), pages 75-92, October.

    More about this item

    Keywords

    Measurement of development; Broad-based development index; Principal component analysis; Sustainable development;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jsecdv:v:22:y:2020:i:1:d:10.1007_s40847-020-00093-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.