THE FORMULATION OF A COMPOSITE REGIONAL DEVELOPMENT INDEX

Abstract

The measurement of a region’s progress with regards to achieving its developmental potential, plays a crucial role in improving the prosperity and quality of life of local communities. This process has however proven difficult as contemporary views on measurement of regional development are presented as multi-dimensional concepts. Attempts at measuring the development process have made use of composite indices, such as the Human Development Index (HDI) and other index variations. Nonetheless, those indexes mostly fail to truly reflect the various dimensions of the development process. The primary objective of this study was to construct a composite regional development index that successfully measures all the dimensions of development in a quantitative manner. The index was designed to be able to assess regions on a national, regional and local level. The hypothesised index consisted of four dimensions (demographic, social, labour and economic) that were constructed from 17 indicators. Furthermore, the index as developed could be utilised as a tool for future analysis in measuring regional efforts and progress as well as being used to compare different economic functional regions regarding the level of socio-economic development

Keywords

• Development index, economic development, regional development

Kaynakça

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