Composite measure of industrial performance for cross-country analysis Shyam Upadhyaya UNIDO. The 59th World Statistics Congress Hong Kong, 25-30 August 2013. Outline of the presentation. Composite measures in international practice What is different in UNIDO’s CIP index
The 59th World Statistics Congress
Hong Kong, 25-30 August 2013
Composite measures in international practice
What is different in UNIDO’s CIP index
Scope, dimensions and construction procedure
Some results and conclusion
Jeder nach seinen Fähigkeiten, jedem nach seinen Bedürfnissen!
From each according to his ability, to each according to his need!
- Karl Marx (1875)
178 composite indices are compiled worldwide in different frequencies
Global climate risk index
Political instability index
From each international agency at least one composite index according to their need ...
Even when all underlying statistics are available … there is no way of capturing the entire wealth of knowledge embedded in a set of numbers in one real number.
- Amartya Sen, 1994
Other similar indices:
Global Competitive Index (GCI)
by the World Economic Forum
World Competitiveness Scoreboard (WCS) by the Institute for Management Development
Doing Business Index (DBI) by the World Bank
Normalization: conversion of real value of varying scale to obtain a common score between 0 to 1
Aggregation of individual scores to CIP value
Equal weights for three dimensions and aggregation through geometric mean
score obtained from k-th variable of i-th indicator and j-th country
A powerful tool for policy advice
Component indicators can be used for industrial diagnostics
Comparison with other composite measures
Rank correlation coefficient with HDI = 0.79