AN ALTERNATIVE MULTI-DIMENSIONAL REGIONAL ECONOMIC DEVELOPMENT INDEX: A PROVINCIAL APPLICATION IN SOUTH AFRICA

Yıl 2018, Cilt: 10 Sayı: 1, 97 - 113, 01.01.2018

Daniel Francois Meyer Jacques De Jongh

Öz

The importance of regional economic development has come to the fore in recent years in driving global development, leading to improving the general standard of living. However, quantifying economic development progress is a difficult process as the measurement thereof is complex and a multi-dimensional concept. Previous attempts to measure economic development have made use of single and limited composite indices, such as the Human Development Index (HDI). These indices are limited in extent, failing to capture important aspects of development and therefore a gap for the formulation of a comprehensive regional economic development index exists. The primary objective of this study was therefore to construct a multi-dimensional, composite, regional development index that measures most dimensions of economic development. The research design methodology included a comprehensive literature review and the use of secondary data obtained from Global Insight. The index as constructed included 18 quantifiable socio-economic variables, consisting of four sub-dimensions and weights were assigned to all individual indicators. The index was applied to all nine provinces in South Africa. The findings indicate that regions are at different stages of development and development occurs at a different pace across regions. The results provide economic development practitioners with detailed insight of the socio-economic strengths and weaknesses of the provinces in South Africa and where interventions are required. The implications of this alternative index are that it could be utilised as a tool for the analysis and measurement of global regional efforts, as well as to compare different economic regions vis-à-vis their level of economic development.  

Anahtar Kelimeler

Economic development, index, regions development, South Africa

Kaynakça

• Ascani, A., Crescenzi, R. & Iammarino, S. (2012). Regional Economic Development: A review. http://www.ub.edu/searchproject/content/uploads.pdf. Accessed 2018/06/16.
• Bloom, D.E. & Sousa-Poza, A. (2013). Ageing and productivity. FZID Discussion Paper,No. 63. Hoffenheim: FZID.
• Bogović, N. & Čegar, S. (2015). Economic characteristics and developmental prospects of east Croatia. In A. Mašek Tonković, A. (Ed.) Fourth International Scientific Symposium Economy of Eastern Croatia: Vision and Growth (pp. 62-70). Osijek: University of Osijek.
• Dalton-Greyling, T. & Tregenna, F. (2016). Construction and analysis of a composite quality of life index for a region of South Africa. Social Indicators Research, 1-44(online).
• Das, S., Mourmouras, A. & Rangazas, P. (2015). Economic growth and develop- ment.New York: Springer.
• Estes, R.J. (1997). Social development trends in Europe, 1970–1994: Development prospects for the new Europe. Social Indicators Research, 42(1), 1-19.
• Feldman, M. & Lowe, N. (2017). Evidence-based economic development policy. Innovations: Technology, Governance, Globalization, 11(3-4), 34-49.
• Feldman, M., Hadjimichael, T., Kemeny, T. & Lanahan, L. (2015). The logic of economic development: A definition and model for investment. Environment and Planning C: Government and Policy, 20(1), 1-17.
• Global Insight. (2017). Regional Explorer. http://www.ihsglobalinsight.co.za/. Accessed 2018/06/03.
• Greyling, C.T. (2013). Measurement and analysis of quality of life of the diverse population of the Gauteng city-region. Doctoral Thesis. Johannesburg: University of Johannesburg.
• Hajduová, Z., Andrejovský, P. & Beslerová, S. (2014). Development of quality of life economic indicators with regard to the environment. Procedia-Social and Behavioral Sciences, 110(1), 747-754.
• Haller, A.P. (2012). Concepts of economic growth and development: Challenges of crisis and of knowledge. Economy Transdisciplinarity Cognition, 15(1), 66-71.
• Higgs, N.T. (2007). Measuring and understanding the well-being of South Africans. Social Indicators Research, 81(2), 331-356.
• IMF (International Monetary Fund). (2006). Data Quality Assessment Framework. http://dsbb.imf.org/images/pdfs/dqrs_factsheet.pdf. Accessed 2018/06/08.
• Ivković, A.F. (2016). Limitations of the GDP as a measure of progress and wellbeing. Review of Contemporary Business, Entrepreneurship and Economic Issues, 29(1),257-272.
• Kaulich, F. (2012). Diversification Vs. Specialization as Alternative Strategies for Economic Development: Can We Settle a Debate by Looking at The Empirical Evidence? Vienna: UNIDO.
• McKinley, T. (2010). Inclusive Growth Criteria and Indicators: An Inclusive Growth Index for Diagnosis of Country Progress. https://www.adb.org/sites/ default/files.pdf. Accessed 2018/02/05.
• Meyer, D.F., De Jongh, J.J. & Meyer, N. (2016). The formulation of a composite regional development index. International Journal of Business and Management Studies, 8(1), 100-116.
• Michalek, J. & Zarnekow, N. (2012). Application of the rural development index to analysis of rural regions in Poland and Slovakia. Social Indicators Research, 105(1), 1-37.
• Midgley, J. (2013). Social Development: Theory and Practice. London: Sage.
• Naudé, W., Rossouw, S. & Krugell, W. (2009). The non-monetary quality of city life in South Africa. Habitat International, 33(4), 319-326.
• OECD (Organisation for Economic Co-operation and Development). (2008). Handbook On Constructing Composite Indicators: Methodology and User Guide. Paris: OECD Publishing.
• OECD (Organisation for Economic Co-operation and Development). (2014). OECD Regional Outlook 2014. Paris: OECD Publishing.
• Perišić, A. & Wagner, V. (2015). Development index: Analysis of the basic instrument of Croatian regional policy. Financial Theory and Practice, 39(2), 205-236.
• Perroux, F. (1955). A note on the notion of a growth pole. Applied Economy, 1(2), 307-20.
• Ramos, R.A, Ranieri, R. & Lammens, J. (2013). Mapping Inclusive Growth.
• https://www.econstor.eu/obitstream/10419/71778/1/.pdf. Accessed 2018/03/04.
• Roy, C. (2017). International Trade and Inclusive Development: Emerging Issues and Enlarging Debates. New Delhi: New Academic Publishers.
• SAARF (South African Audience Research Foundation). (2011). Development Index. http://www.saarf.co.za/amps/developmentindex.asp. Accessed 2018/05/07.
• Samans, R., Blanke, J., Hanouz, M.D. & Corrigan, G. (2017). The Inclusive Growth and Development Report 2017. Geneva: World Economic Forum.
• Sánchez-Domínguez, Á. & Ruiz-Martos, M.J. (2014). A progressive approach to the measurement of regional performance in the European Union. Journal for a Progressive Economy, 3(1), 62-104.
• Schrott, L., Gachter, M. & Theurl, E. (2015). Regional development in advanced countries: A within-country application of the Human Development Index for Austria. DANUBE: Law and Economics Review, 6(1), 1-23.
• Škare, M. & Družeta, R.P. (2016). Poverty and economic growth: A review. Technological and Economic Development of Economy, 22(1), 156-175.
• Stiglitz, J., Sen, A.K. & Fitoussi, J.P. (2009). The measurement of economic performance and social progress revisited: Reflections and overview. OFCE Working Paper. New York, NY: Columbia University.
• Stocker, A., Gerold, S., Hinterberger, F., Berwald, A., Soleille, S., Morgan, V.A. &Zoupanidou, E. (2015). The Interaction of Resource and Labour Productivity: A Scoping Study. Vienna: SERI.
• Todaro, M.P. & Smith, S.C. (2015). Economic Development. 12th ed. Essex, UK:Pearson Education Limited.
• UNDP (United Nations Development Programme). (1990). Human Development Report 1990. New York, NY: Oxford University Press.