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Alternative Composite Lisbon Development Strategy Indices

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Author Info
Jong-Eun Oh (TEPP, Seoul National University)
Almas Heshmati () (TEPP, Seoul National University and IZA Bonn)

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Abstract

This study addresses the measurement of two composite Lisbon strategy indices that quantifies the level and patterns of development for ranking countries. The first index is nonparametric labelled as Lisbon strategy index (LSI). It is composed of six components: general economics, employment, innovation research, economic reform, social cohesion and environment, each generated from a number of Lisbon indicators. LSI by reducing the complexity of the set of indicators, it makes the ranking procedures quite simple. The second and parametric index is based on principal component analysis. Despite the difference in the ranking by the two indices, it is shown that the United States outperformed most EU-member states. Our investigations also show evidence of significant dynamic changes taking place, as the countries of the Union struggle to achieve the Lisbon goals. The necessity of a real reform agenda in several old and new members and candidate countries emerges from our analysis.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1734.

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Length: 37 pages
Date of creation: Sep 2005
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Handle: RePEc:iza:izadps:dp1734

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Related research
Keywords: economic development; economic integration; composite index; Lisbon Agenda;

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Find related papers by JEL classification:
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
F15 - International Economics - - Trade - - - Economic Integration
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Andersen, Torben M. & Herbertsson, Tryggvi Thor, 2003. "Measuring Globalization," IZA Discussion Papers 817, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Archibugi, Daniele & Coco, Alberto, 2004. "A New Indicator of Technological Capabilities for Developed and Developing Countries (ArCo)," World Development, Elsevier, vol. 32(4), pages 629-654, April. [Downloadable!] (restricted)
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This page was last updated on 2009-11-30.

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