Inclusive Growth Index - Methodology
2023-09-26
About the project
This is a methodological guide for compilation of the Inclusive Growth Index (IGI). Each chapter contains detailed information about individual steps required for the IGI compilation and production.
The Inclusive Growth Index is a composite indicator of growth developed by UNCTAD.
The 2023 edition of the IGI is calculated by using updated data series, following the methodology from 2022. In the version developed in 2022 (see SDG Pulse 2022), it consists of 27 baseline indicators, grouped in 4 pillars (economic growth, living conditions, equality and environment).
The SDG Pulse 2022 chapter is available at: https://sdgpulse.unctad.org/inclusive-growth/
To produce annual releases of the indicator, a number of steps are followed. These include:
- Introduction
- Data collection and processing
- Data interpolation, extrapolation and imputation
- Data transformation
- Principal Component Analysis
- Assigning weights to indicators
- Index compilation
The underlying data, imputation used and the resulting Inclusive Growth Index for 2021 is examined in more detail: https://bookdown.org/kynclova_petra/IGI_results/
Other technical information
Following R packages should be installed and loaded:
# Libraries
library(tidyverse)
library(readxl)
General guidance on construction of composite indicators by the JRC: https://bluefoxr.github.io/COINrDoc/
PCA for composite indices and questions related to PCA applied on longitudinal data: