A New Multidimensional Measure of Development: The Role of Technology and Institutions

Ganegodage, K. Renuka, Rambaldi, Alicia N., Rao, D. S. Prasada and Tang, Kam K. (2015) A New Multidimensional Measure of Development: The Role of Technology and Institutions. Social Indicators Research, 131 1: 65-92. doi:10.1007/s11205-015-1139-7


Author Ganegodage, K. Renuka
Rambaldi, Alicia N.
Rao, D. S. Prasada
Tang, Kam K.
Title A New Multidimensional Measure of Development: The Role of Technology and Institutions
Journal name Social Indicators Research   Check publisher's open access policy
ISSN 0303-8300
1573-0921
Publication date 2015-10-13
Year available 2015
Sub-type Article (original research)
DOI 10.1007/s11205-015-1139-7
Open Access Status Not Open Access
Volume 131
Issue 1
Start page 65
End page 92
Total pages 28
Place of publication Dordrecht, The Netherlands
Publisher Springer
Language eng
Subject 3204 Developmental and Educational Psychology
1201 Arts and Humanities (miscellaneous)
3312 Sociology and Political Science
3300 Social Sciences
Abstract This paper constructs four structural indices by using 42 socioeconomic variables for 129 countries and the 10 years period from 2003 to 2012. Each structural index can be considered as a measure of a certain dimension of development. The first two indices are the most useful in explaining gaps in development across countries. The first captures the role of technology and institutional quality while the second provides a measure of the basic level of development. The contrast between them signifies that the notion of development is not only multidimensional, but also changing with the stage of development. These two indices are combined to form a development index (DI). A comparison of DI to income per capita and the Human Development Index highlights the importance of institutions in the transition of countries from merely having high income to full development. A methodological contribution of the paper is to use a Jackknife approach within the factor analysis routine to test for the significance of the extracted factors/indices.
Formatted abstract
This paper constructs four structural indices by using 42 socioeconomic variables for 129 countries and the 10 years period from 2003 to 2012. Each structural index can be considered as a measure of a certain dimension of development. The first two indices are the most useful in explaining gaps in development across countries. The first captures the role of technology and institutional quality while the second provides a measure of the basic level of development. The contrast between them signifies that the notion of development is not only multidimensional, but also changing with the stage of development. These two indices are combined to form a development index (DI). A comparison of DI to income per capita and the Human Development Index highlights the importance of institutions in the transition of countries from merely having high income to full development. A methodological contribution of the paper is to use a Jackknife approach within the factor analysis routine to test for the significance of the extracted factors/indices.
Keyword Development index
Institutions
Factor analysis
Standard errors
Real income
HDI
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2016 Collection
School of Economics Publications
 
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Created: Fri, 16 Oct 2015, 23:00:01 EST by Alys Hohnen on behalf of School of Economics