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Information Theoretic Competitiveness Composite Indicator at Micro Level

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  • Rosa Bernardini Papalia
  • Pinuccia Calia
  • Carlo Filippucci

Abstract

In this paper we study the potentialities of a multivariate index approach for measuring competitiveness. Our proposal aims at developing a multidimensional economic performance index that could be used to measure and compare competitiveness at different level of aggregation (country, region or sector) with a micro-level foundation. The basic idea is to analyse the firm competitiveness by means of multivariate inequality indexes following the approach of Maasoumi (The measurement and decomposition of multidimensional inequality. Econometrica 991–997, 1986 ). An empirical analysis of the multidimensional economic performance index is also provided in terms of profitability, productivity as well as output growth using micro-data for Italian firms for the year 2008. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Rosa Bernardini Papalia & Pinuccia Calia & Carlo Filippucci, 2015. "Information Theoretic Competitiveness Composite Indicator at Micro Level," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 123(2), pages 349-370, September.
  • Handle: RePEc:spr:soinre:v:123:y:2015:i:2:p:349-370
    DOI: 10.1007/s11205-014-0745-0
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    References listed on IDEAS

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    9. François Bourguignon & Satya R. Chakravarty, 2019. "The Measurement of Multidimensional Poverty," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 83-107, Springer.
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    13. Frikkie Booysen & Ronelle Burger & Gideon Du Rand & Michael von Maltitz & Servaas Van der Berg, 2007. "Trends in Poverty and Inequality in Seven African Countries," Working Papers PMMA 2007-06, PEP-PMMA.
    14. Giovanni Ferro Luzzi & Yves Flückiger & Sylvain Weber, 2008. "A Cluster Analysis of Multidimensional Poverty in Switzerland," Palgrave Macmillan Books, in: Nanak Kakwani & Jacques Silber (ed.), Quantitative Approaches to Multidimensional Poverty Measurement, chapter 4, pages 63-79, Palgrave Macmillan.
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    More about this item

    Keywords

    Inequality; Multidimensional index; Decomposition; Information theory; Competitiveness; Firm data; C20; D63;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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