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Transforming Economic Growth into Inclusive Development: An International Analysis

Social Indicators Research volume 145, pages 437–457 (2019)Cite this article

Abstract

This paper conducts a critical analysis on growth and development in world countries. Using different dimensions featured in the development of several synthetic indexes, it analyzes the relationship between wealth and development estimates. It therefore uses the indicator developed by the World Development Forum, the Inclusive Development Index, turned into complementary economic estimators for different scenarios. Its results allow us to identify key factors for robust synthetic indicators and detect the dimensions and variables of development that have a greater impact on the ranking of countries.

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Fig. 1

Source: Own elaboration

Fig. 2

Source: Own elaboration

Fig. 3

Source: Own elaboration

Notes

  1. The Human Development Report (HDR) Series is a “medium for sharing recent research commissioned to inform the global Human Development Report, which is published annually, and further research in the field of human development” (Neumayer 2011). Yearly reports can be found at: http://www.hdr.undp.org/.

  2. Broader information can be found in Ul Haq (1995), the previous work of the author of this Report.

  3. In fact, as Mishra and Nathan (2013) point out, this work is one of the last attempts of an institutional commitment that should lead to a change in the national accounting systems.

  4. This institution developed the so-called the Physical Quality of Life Index (PQLI) in the mid seventies.

  5. For further information, see Mishra and Nathan (2008) or Seth and Villar (2017).

  6. We recalculated the same values for the same indicators and used the arithmetic mean of the normalized values to calculate the IDI for the total of countries (29 + 78) in a single ranking. Table 2 shows the variation between both. The data for the SDI comes from the aforementioned/cited publication.

  7. For example Haiti, Malawi or Togo.

  8. For example Brunei, Kuwait or Luxembourg.

  9. As it is the case of the United States.

  10. 158 for the SDI and 107 for the IDI.

  11. Let us recall that Singapore and Algeria have no estimates.

  12. For example, the selected indicators or including GDP or other indicators closely related to it (such as labor productivity).

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Acknowledgements

We are very grateful to Santiago Lago-Peñas and two anonymous referees for their insightful comments on a previous version of this paper.

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Authors and Affiliations

  1. Faculty of Economics and Business – University Campus, ECOBAS - University of Vigo, 36200, Vigo, Spain

    Albino Prada

  2. Faculty of Business and Tourism – University Campus, GEN - University of Vigo, 32004, Ourense, Spain

    Patricio Sánchez-Fernández

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  1. Albino Prada
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Correspondence to Patricio Sánchez-Fernández.

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Prada, A., Sánchez-Fernández, P. Transforming Economic Growth into Inclusive Development: An International Analysis. Soc Indic Res 145, 437–457 (2019). https://doi.org/10.1007/s11205-019-02096-x

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Keywords

  • Growth
  • Development
  • UNDP
  • World Economic Forum
  • Synthetic indicators

JEL Classification

  • I31
  • O10
  • O57
  • P24
  • P44
  • R13