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The Inclusive and Sustainable Industrial 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 the full engagement and commitment of policymakers in industrializing countries to minimize the environmental footprint and enhance social inclusion. 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 using two approaches: i) the ISID approach represents countries’ ambition to promote industrialization and to sustain economic growth by reducing the negative environmental and social effects that become manifest in the economy; ii) the ISIDsdg9 approach considers the same aspects of ISID but only focusses on indicators related to the industrial sector. We develop an analytical tool to measure ISID using these two different approaches. This study finds that Denmark, Sweden and Switzerland top the ranking when applying the ISID approach, and that Czechia and Switzerland rank highest when we apply the ISIDsdg9 approach. We could not detect any signs of catching up between developed and developing countries in terms of progress towards ISID and ISIDsdg9 between 2005 and 2013.

Suggested Citation

  • Charles Fang Chin Cheng & Nicola Cantore, 2020. "The Inclusive and Sustainable Industrial Development Index: A Data Envelopment Analysis approach," SEEDS Working Papers 0320, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Mar 2020.
    • Handle: RePEc:srt:wpaper:0320
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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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