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The Inclusive and Sustainable Development Index: a Data Envelopment Analysis Approach

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  • Charles Fang Chin Cheng

    (Department of Policy Research and Statistics, UNIDO)

  • Nicola Cantore

    (Department of Policy Research and Statistics, UNIDO)

Abstract

Inclusive and Sustainable Industrial Development (ISID) calls for full engagement of policymakers in industrializing countries by minimizing environmental footprint and enhancing social inclusiveness. This study investigates the progress of 118 countries towards ISID (2005-2015) through an input-oriented CCR (Charnes, Cooper, and Rhodes) slack-based (Data Envelopment Analysis) DEA model. The efficiency analyses have been carried out with two approaches: i) the ISID approach represents the aspiration of countries to promote industrialization and consequently sustain economic growth by reducing the adverse environmental and social effects which manifest in the overall economy; ii) ISIDsdg9 approach considers the same aspects of ISID but only focuses on indicators related to the industrial sector. An analytical tool is developed to measure ISID with the two different approaches. This study finds that (i) Denmark, Sweden, and Switzerland are at the top of the ranking with the ISID approach, and the Czech Republic and Switzerland are at the top of the ranking with the ISIDsdg9 approach. Throughout 2005-2013, there is no sign of catching up between developed and developing countries in progress towards ISID and ISIDsdg9.

Suggested Citation

  • Charles Fang Chin Cheng & Nicola Cantore, 2020. "The Inclusive and Sustainable Development Index: a Data Envelopment Analysis Approach," Working Papers 2020.05, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2020.05
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    References listed on IDEAS

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    Cited by:

    1. Cheng, Charles Fang Chin & Yuan, Qianqian & Hua, Cheng & Xu, Yunqing & Cantore, Nicola & Wang, Ke, 2023. "Global Inclusive and Sustainable Competitive Industrial Performance (ISCIP): An efficiency based spatio-temporal analysis for 139 countries," Applied Energy, Elsevier, vol. 333(C).

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    More about this item

    Keywords

    Slack-Based Model (SBM); Inclusive and Sustainable Industrial Development (ISID); Data Envelopment Analysis (DEA); United Nations Sustainable Development Goals (UN SDGs);
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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