IDEAS home Printed from https://ideas.repec.org/p/adb/adbwps/2368.html
   My bibliography  Save this paper

Working Paper 257 - The Inclusive and Sustainable Transformation Index

Author

Listed:
  • Justin Lin
  • Monga Célestin
  • Standaert Samuel

Abstract

In this paper, we put forth an index of Inclusive Sustainable Transformation (IST) that captures the extent to which a country has developed a modern industry or services-based economy that at the same time protects the environment and is gender inclusive. This index distinguishes itself from other indicators that track the structural characteristics of the economy by ensuring that the comparisons between countries account for differences in the level of development, in line with New Structural Economics thinking. In other words, it evaluates how well the country scores given its available resources. In addition, by addressing data availability problems using multiple imputation techniques, the index is able to compare the performance on a wide range of topics for almost 200 countries over 25 years, including a large group of developing countries that are often left out. In addition to monitoring the progress made towards the establishment of an inclusive and environmental-friendly modern economy, the index is a useful tool for policy makers and analysts. By decomposing the total score back into its components, it can help identify areas that require additional attention, as well the ‘best practice’ in countries at similar levels of development.

Suggested Citation

  • Justin Lin & Monga Célestin & Standaert Samuel, 2017. "Working Paper 257 - The Inclusive and Sustainable Transformation Index," Working Paper Series 2368, African Development Bank.
    • Handle: RePEc:adb:adbwps:2368
    as

    Download full text from publisher

    File URL: https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/WPS_No_257_The_Inclusive_and_Sustainable_Transformation_Index2__Z___004_A.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ghani, Ejaz (ed.), 2010. "The Service Revolution in South Asia," OUP Catalogue, Oxford University Press, number 9780198065111.
    2. Justin Lin & David Rosenblatt, 2012. "Shifting patterns of economic growth and rethinking development," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 15(3), pages 171-194.
    3. Luiz de Mello, 1997. "Foreign direct investment in developing countries and growth: A selective survey," Journal of Development Studies, Taylor & Francis Journals, vol. 34(1), pages 1-34.
    4. repec:oup:wbrobs:v:27:y:2011:i:1:p:1-32 is not listed on IDEAS
    5. Justin Yifu Lin & C�lestin Monga, 2012. "Solving the Mystery of African Governance," New Political Economy, Taylor & Francis Journals, vol. 17(5), pages 659-666, November.
    6. Joseph E. Stiglitz & Justin Yifu Lin (ed.), 2013. "The Industrial Policy Revolution I," International Economic Association Series, Palgrave Macmillan, number 978-1-137-33517-3, March.
    7. Robert C. Feenstra & Robert Inklaar & Marcel P. Timmer, 2015. "The Next Generation of the Penn World Table," American Economic Review, American Economic Association, vol. 105(10), pages 3150-3182, October.
    8. Justin Yifu Lin, 2013. "From Flying Geese to Leading Dragons: New Opportunities and Strategies for Structural Transformation in Developing Countries," International Economic Association Series, in: Joseph E. Stiglitz & Justin Lin Yifu & Ebrahim Patel (ed.), The Industrial Policy Revolution II, chapter 1, pages 50-70, Palgrave Macmillan.
    9. Justin Yifu Lin, 2012. "The Quest for Prosperity: How Developing Economies Can Take Off," Economics Books, Princeton University Press, edition 1, number 9812.
    10. Margaret S. McMillan & Dani Rodrik, 2011. "Globalization, Structural Change and Productivity Growth," NBER Working Papers 17143, National Bureau of Economic Research, Inc.
    11. Montfort Mlachila & René Tapsoba & Sampawende J. A. Tapsoba, 2017. "A Quality of Growth Index for Developing Countries: A Proposal," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(2), pages 675-710, November.
    12. Ejaz Ghani & Homi Kharas, 2010. "The Service Revolution," World Bank Publications - Reports 10187, The World Bank Group.
    13. Luiz R. de Mello Jr., 1997. "Foreign Direct Investment in Developing Countries: A Selective Survey," Studies in Economics 9701, School of Economics, University of Kent.
    14. van Buuren, Stef & Groothuis-Oudshoorn, Karin, 2011. "mice: Multivariate Imputation by Chained Equations in R," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 45(i03).
    15. Nigel Driffield & Chris Jones, 2013. "Impact of FDI, ODA and Migrant Remittances on Economic Growth in Developing Countries: A Systems Approach," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 25(2), pages 173-196, April.
    16. Ejaz Ghani & Arti Grover Goswami & Homi Kharas, 2012. "Service with a Smile," World Bank Publications - Reports 17068, The World Bank Group.
    17. Andrei Bougrov & Robert Johnson & Benno Ndulo & Pedro Paez & Avinash Persaud & Heidemarie Wieczorek-Zeul & Akhtar Aziz Zeti & Charles Goodhart & Jomo Kwame Sundaram & Youssef Boutros-Ghali & José Anto, 2010. "The Stiglitz Report," SciencePo Working papers Main hal-03415638, HAL.
      • Andrei Bougrov & Robert Johnson & Benno Ndulo & Pedro Paez & Avinash Persaud & Heidemarie Wieczorek-Zeul & Akhtar Aziz Zeti & Charles Goodhart & Jomo Kwame Sundaram & Youssef Boutros-Ghali & José Anto, 2010. "The Stiglitz Report," Working Papers hal-03415638, HAL.
    18. Gaulier, Guillaume & Zignago, Soledad, 2004. "Notes on BACI (analytical database of international trade). 1989-2002 version," MPRA Paper 32401, University Library of Munich, Germany.
    19. Henderson,Daniel J. & Parmeter,Christopher F., 2015. "Applied Nonparametric Econometrics," Cambridge Books, Cambridge University Press, number 9780521279680, December.
    20. Currie-Alder, Bruce & Kanbur, Ravi & Malone, David M. & Medhora, Rohinton (ed.), 2014. "International Development: Ideas, Experience, and Prospects," OUP Catalogue, Oxford University Press, number 9780199671663.
    21. Jagdish N. Bhagwati, 1984. "Splintering and Disembodiment of Services and Developing Nations," The World Economy, Wiley Blackwell, vol. 7(2), pages 133-144, June.
    22. Dirk Philipsen, 2015. "The Little Big Number: How GDP Came to Rule the World and What to Do about It," Economics Books, Princeton University Press, edition 1, number 10420.
    23. Peter Timmer & Selvin Akkus, 2008. "The Structural Transformation as a Pathway out of Poverty: Analytics, Empirics and Politics," Working Papers 150, Center for Global Development.
    24. Justin Yifu Lin & David Rosenblatt, 2012. "Shifting patterns of economic growth and rethinking development," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 15(3), pages 171-194, September.
    25. Diane Coyle, 2014. "GDP: A Brief but Affectionate History," Economics Books, Princeton University Press, edition 1, number 10183.
    26. Montek S. Ahluwalia, 2015. "Role of economists in policy-making," WIDER Working Paper Series 144, World Institute for Development Economic Research (UNU-WIDER).
    27. Célestin Monga, 2013. "Winning the Jackpot: Jobs Dividends in a Multipolar World," International Economic Association Series, in: Joseph E. Stiglitz & Justin Lin Yifu & Ebrahim Patel (ed.), The Industrial Policy Revolution II, chapter 3, pages 135-172, Palgrave Macmillan.
    28. Montek S. Ahluwalia, 2015. "Role of economists in policy-making," WIDER Working Paper Series wp-2015-144, World Institute for Development Economic Research (UNU-WIDER).
    29. Justin Yifu Lin & Célestin Monga, 2013. "Comparative Advantage: The Silver Bullet of Industrial Policy," International Economic Association Series, in: Joseph E. Stiglitz & Justin Yifu Lin (ed.), The Industrial Policy Revolution I, chapter 1, pages 19-38, Palgrave Macmillan.
    30. Ghani, Ejaz & Kharas, Homi, 2010. "The Service Revolution," World Bank - Economic Premise, The World Bank, issue 14, pages 1-5, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Justin Yifu Lin & Célestin Monga & Samuel Standaert, 2019. "The Inclusive Sustainable Transformation Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(1), pages 47-80, May.
    2. Ghani, Ejaz & O'Connell, Stephen D., 2014. "Can service be a growth escalator in low-income countries ?," Policy Research Working Paper Series 6971, The World Bank.
    3. Reda Cherif & Fuad Hasanov, 2019. "The Return of the Policy That Shall Not Be Named: Principles of Industrial Policy," IMF Working Papers 2019/074, International Monetary Fund.
    4. Mishra, Saurabh & Lundstrom, Susanna & Anand, Rahul, 2011. "Service export sophistication and economic growth," Policy Research Working Paper Series 5606, The World Bank.
    5. Bianka Dettmer, 2012. "Business services outsourcing and economic growth: Evidence from a dynamic panel data approach," Jena Economics Research Papers 2012-049, Friedrich-Schiller-University Jena.
    6. Sundar Ponnusamy, 2022. "Export specialization, trade liberalization and economic growth: a synthetic control analysis," Empirical Economics, Springer, vol. 63(2), pages 637-669, August.
    7. Gisela Di Meglio & Jorge Gallego & Andrés Maroto & Maria Savona, 2015. "Services in Developing Economies: A new chance for catching-up?," SPRU Working Paper Series 2015-32, SPRU - Science Policy Research Unit, University of Sussex Business School.
    8. Kumar Gaurav & Nalin Bharti, 2018. "India–Japan CEPA," Foreign Trade Review, , vol. 53(3), pages 189-203, August.
    9. Ranjan Dash & P. Parida, 2013. "FDI, services trade and economic growth in India: empirical evidence on causal links," Empirical Economics, Springer, vol. 45(1), pages 217-238, August.
    10. Di Meglio, Gisela & Gallego, Jorge, 2022. "Disentangling services in developing regions: A test of Kaldor's first and second laws," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 221-229.
    11. Kuznetsov, B. & Simachev, Yu., 2014. "Evolution of State Industrial Policy in Russia," Journal of the New Economic Association, New Economic Association, vol. 22(2), pages 152-178.
    12. Gary Clyde Hufbauer & J. Bradford Jensen & Sherry Stephenson & Julia Muir & Martin Vieiro, 2012. "Framework for the International Services Agreement," Policy Briefs PB12-10, Peterson Institute for International Economics.
    13. Ghani, Ejaz & Kharas, Homi, 2010. "The Service Revolution," World Bank - Economic Premise, The World Bank, issue 14, pages 1-5, May.
    14. Mr. Nikola Spatafora & Rahul Anand & Mr. Saurabh Mishra, 2012. "Structural Transformation and the sophistication of Production," IMF Working Papers 2012/059, International Monetary Fund.
    15. Kose,Ayhan & Ohnsorge,Franziska Lieselotte & Ye,Lei Sandy & Islamaj,Ergys, 2017. "Weakness in investment growth : causes, implications and policy responses," Policy Research Working Paper Series 7990, The World Bank.
    16. Mitra, Arup & Sharma, Chandan & Véganzonès-Varoudakis, Marie-Ange, 2014. "Trade liberalization, technology transfer, and firms’ productive performance: The case of Indian manufacturing," Journal of Asian Economics, Elsevier, vol. 33(C), pages 1-15.
    17. Vandana Chandra & Justin Yifu Lin & Yan Wang, 2013. "Leading Dragon Phenomenon: New Opportunities for Catch-up in Low-Income Countries," Asian Development Review, MIT Press, vol. 30(1), pages 52-84, March.
    18. Mohapatra, Sanket & Nagar, Jay Prakash, 2020. "Foreign Currency Borrowing and Firm Financing Constraints in Emerging Markets: Evidence from India," IIMA Working Papers WP 2020-08-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    19. van der Marel, Erik, 2011. "Determinants of comparative advantage in services," LSE Research Online Documents on Economics 38993, London School of Economics and Political Science, LSE Library.
    20. Jedwab, Remi & Vollrath, Dietrich, 2015. "Urbanization without growth in historical perspective," Explorations in Economic History, Elsevier, vol. 58(C), pages 1-21.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adb:adbwps:2368. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/afdbgci.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adeleke Oluwole Salami (email available below). General contact details of provider: https://edirc.repec.org/data/afdbgci.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.