Abstract
In this paper we study the potentialities of a multivariate index approach for measuring competitiveness. Our proposal aims at developing a multidimensional economic performance index that could be used to measure and compare competitiveness at different level of aggregation (country, region or sector) with a micro-level foundation. The basic idea is to analyse the firm competitiveness by means of multivariate inequality indexes following the approach of Maasoumi (The measurement and decomposition of multidimensional inequality. Econometrica 991–997, 1986). An empirical analysis of the multidimensional economic performance index is also provided in terms of profitability, productivity as well as output growth using micro-data for Italian firms for the year 2008.
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Notes
When, \(\sum\nolimits_{j = 1}^{m} {w_{j} } = m\;S_{ji} \propto \left[ {(\beta + 1)X_{ji}^{ - \beta } } \right]^{{{{ - 1} \mathord{\left/ {\vphantom {{ - 1} \beta }} \right. \kern-0pt} \beta }}}\), otherwise if \(\sum\nolimits_{j = 1}^{m} {w_{j} } = m\;S_{ji} \propto \left[ {\frac{(\beta + 1)}{m}X_{ji}^{ - \beta } } \right]^{{{{ - 1} \mathord{\left/ {\vphantom {{ - 1} \beta }} \right. \kern-0pt} \beta }}}\).
More specifically, the inequality aversion parameter ε in the Atkinson index assumes only positive values ε > 0 and is related to α by ε = 1 − α. In empirical applications the boundaries for α are often set normatively (α < 1).
Lugo and Maasoumi (2008) have proposed alternative approaches to the derivation of multidimensional poverty indices using information theory: the aggregate poverty line approach and the component poverty line approach.
Economic activities covered by the two surveys are the sections from B to N and from P to S of the classification of economic activities Nace Rev. 2.
(1) the rural high Valnerina area (Norcia and Cascia) projected to enhance the economic potential of cultural and environmental specificities; (2) Città di Castello and Umbertide characterized by a territorial organization of district type, (3) the area of Tevere's valley, re-organized in the rural Todi, the area relative to Perugia, Deruta, and an area of small and medium enterprises with a significant systemic organizational structure, Marsciano;(4) the territories of the Lake Trasimeno, Orvieto, those of the Valle Umbra (Assisi, Foligno), and so on (the Terni, in the Gubbio area Gualdese), each with its own characteristics and distinct growth path characterized by distinctive specificities.
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Acknowledgments
The work is conducted within the BLUE-ETS research project financed by the European Commission under FP7 (cf. http://www.blue-ets.eu). The authors would like to thank the Italian National Institute of Statistics (ISTAT) for kindly providing the data sets on which this study is based.
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Appendix
Appendix
See Tables 9, 10, 11, 12 and 13.
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Bernardini Papalia, R., Calia, P. & Filippucci, C. Information Theoretic Competitiveness Composite Indicator at Micro Level. Soc Indic Res 123, 349–370 (2015). https://doi.org/10.1007/s11205-014-0745-0
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DOI: https://doi.org/10.1007/s11205-014-0745-0