Approach to a Departmental Economic Development Index in Colombia
Aproximación a un Índice de Desarrollo Económico Departamental en Colombia
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Composite indices represent an instrument to make measurements of complex phenomena useful for making public policy decisions in the territories. In this research, the methodological conceptualization of a subnational economic development index in Colombia was advanced, taking the 32 departments and the capital, from a theoretical position of historical and dynamic changes in societies based on the pillars of the transformation of economic structures, and its socioeconomic effects, the theory of modernity from the penetration of information and communication technologies, and the theory of demographic transition. The results are satisfactory because they show the gaps within the country and there are strong correlations with composite indices developed by other national institutions and variables not included in the estimate that complement the concept of economic development such as the business fabric, workers' income, the education levels of the population, fiscal capacities and some indicators of subjective well-being. Its main limitation is a small approach in the number of variables that can omit other dimensions of development, in this case unobservable factors and that would explain the low correlation of the index with other variables.
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