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Quantifying the Economic Development Dynamics of a Country Based on the Lorenz Curve

Abstract

The welfare of a country depends on its economic development. In order to have the impact on it, we should have a possibility to quantitatively assess its situation at the desired point in time. Economic development, as a multifaceted and complex phenomenon, is reflected in two dimensions – intensity and uniformity. These mentioned above can be viewed as partial indicators of dynamics. Two main approaches to measuring development uniformity can be distinguished. In one of the cases, it is measured on the basis of an index that includes the main results of the country's economic development. In the other case, the values of the indicators reflecting all the essential development actions are combined in one appropriate way. From a scientific point of view, the second approach is more accurate as it allows for a better assessment of the complex nature of a country’s economic development. On the other hand, its application today is still problematic due to the fact that the models for this differ in terms of both the number and composition of indicators. For this reason, it is not possible to compare countries. Therefore, in international practice, the economic development of countries is measured by gross domestic product per capita (GDP). Based on GDP indicator, the method for the measurement of uniformity is proposed and the essence of which is the ratio of the length of the ideal trajectory of the development during the period under review to the length of the actual trajectory. Without ruling out the appropriateness of such an approach for assessing development uniformity, it makes sense to look for alternative methods. In this sense, methods that allow assessment of the extent of fluctuations of the phenomenon under consideration as an essential feature of development dynamics are suitable. These include the Gini coefficient, which is determined from the Lorenz curve.

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Quantifying the Economic Development Dynamics of a Country Based on the Lorenz Curve

Author: Ginevičius, Romualdas
Publisher: Technická Univerzita v Liberci
Year: 2021
Source: https://dspace.tul.cz/bitstreams/9ef5894a-20f6-4527-ac6a-0939efed0a94/download
55
1, XXIV, 2021
Economics
DOI: 10.15240/ ul/001/2021-1-004
QUANTIFYING THE ECONOMIC
DEVELOPMENT DYNAMICS OF A COUNTRY
BASED ON THE LORENZ CURVE
Romualdas Gine ičius1, Joanicjusz Naza ko2,
Daino a Ged ilai ė3, Zdzisława Dacko-Pikiewicz4
1 Vilnius Gediminas Technical Uni e si y, Facul y o Business Managemen , Ins i u e o Dynamic Managemen ,
Li huania, ORCID: 0000-0003-2067-4398, [email p o ec ed];
2 Bialys ok Uni e si y o Technology, Facul y o Enginee ing Managemen , Poland, ORCID: 0000-0002-0236-2334,
[email p o ec ed];
3 Vilniaus Kolegija/Uni e si y o Applied Sciences, Facul y o Economics, Depa men o Finance, Li huania, ORCID:
000-0001-5813-0607, [email p o ec ed];
4 WSB Uni e si y, Facul y o Applied Sciences, Poland, ORCID: 0000-0003-4542-5574, [email p o ec ed].
Abs ac : The wel a e o a coun y depends on i s economic de elopmen . In o de o ha e he
impac on i , we should ha e a possibili y o quan i a i ely assess i s si ua ion a he desi ed poin
in ime. Economic de elopmen , as a mul i ace ed and complex phenomenon, is e lec ed in wo
dimensions – in ensi y and uni o mi y. These men ioned abo e can be iewed as pa ial indica o s
o dynamics. Two main app oaches o measu ing de elopmen uni o mi y can be dis inguished.
In one o he cases, i is measu ed on he basis o an index ha includes he main esul s o he
coun y’s economic de elopmen . In he o he case, he alues o he indica o s e lec ing all he
essen ial de elopmen ac ions a e combined in one app op ia e way. F om a scien i ic poin o iew,
he second app oach is mo e accu a e as i allows o a be e assessmen o he complex na u e o
a coun y’s economic de elopmen . On he o he hand, i s applica ion oday is s ill p oblema ic due
o he ac ha he models o his di e in e ms o bo h he numbe and composi ion o indica o s.
Fo his eason, i is no possible o compa e coun ies. The e o e, in in e na ional p ac ice, he
economic de elopmen o coun ies is measu ed by g oss domes ic p oduc pe capi a (GDP).
Based on GDP indica o , he me hod o he measu emen o uni o mi y is p oposed and he essence
o which is he a io o he leng h o he ideal ajec o y o he de elopmen du ing he pe iod unde
e iew o he leng h o he ac ual ajec o y. Wi hou uling ou he app op ia eness o such an
app oach o assessing de elopmen uni o mi y, i makes sense o look o al e na i e me hods. In
his sense, me hods ha allow assessmen o he ex en o luc ua ions o he phenomenon unde
conside a ion as an essen ial ea u e o de elopmen dynamics a e sui able. These include he Gini
coe icien , which is de e mined om he Lo enz cu e.
Keywo ds: Coun y economic de elopmen , quan i ica ion o dynamics o economic de elopmen ,
Gini coe icien , Lo enz cu e.
JEL Classi ica ion: O1, O11.
APA S yle Ci a ion: Gine ičius, R., Naza ko, J., Ged ilai ė, D., & Dacko-Pikiewicz, Z. (2020).
Quan i ying he Economic De elopmen Dynamics o a Coun y Based on he Lo enz Cu e.
E&M Economics and Managemen , 24(1), 55–65. h ps://doi.o g/10.15240/ ul/001/2021-1-004
In oduc ion
Today ma ke playe s a all le els, om
business ope a o s o coun ies, s i e o be
compe i i e. This aspi a ion is no passi e, and
is no only abou main aining cu en posi ions.
As a esul o he global economic de elopmen
o he wo ld, he g ow h o global ma ke s o ces
pa icula coun ies o inc ease he economic
scale o he economic g ow h, o he wise
hey will lose hei posi ions. The pu sui o
56 2021, XXIV, 1
Economics
an inc easing sha e o in e na ional ma ke s
becomes he basis o a coun y’s compe i i e
capaci y. Only by keeping pace wi h he g ow h
o he single ma ke wa an y ha hey emain
compe i i e. The e o e, de elopmen becomes
a hallma k o compe i i eness.
In his con ex , i is impo an o bo h science
and p ac ice o ully analyse he phenomenon
o economic de elopmen .
The de elopmen o any p ocess can
be cha ac e ized by wo cha ac e is ics – i s
in ensi y and i s uni o mi y (Gine ičius e
al., 2018). In ensi y o de elopmen is he
a e o de elopmen g ow h o e he pe iod
conside ed, exp essed, o example, in yea s.
S eady de elopmen eads as luc ua ions in
he ex en o de elopmen o e he ime pe iods
conside ed. These wo dimensions can be seen
as sub-indica o s o he o e all de elopmen
p ocess. The i s indica o e lec s upon he
quan i a i e side o he de elopmen p ocess,
and he second indica o s e lec s upon he
quali a i e side. The de elopmen p ocess
as a whole is e lec ed by i s dynamics,
which combines bo h o he abo e men ioned
indica o s. I shows he ex en and ype o
de elopmen changes ha ha e aken place
o e he pe iod unde e iew.
The essence o dynamics as a phenomenon
is exp essed by he ollowing synonyms o his
e m in in e na ional dic iona ies: sus ainable,
s eady, esilien , s able, immo able, solid,
immu able, du able, pe manen , se led,
long-las ing, e en, e c. This abundance o
unde s anding o dynamics is in eg a ed by he
wo dimensions men ioned abo e – de elopmen
in ensi y and de elopmen con inui y.
In he scien i ic li e a u e a emp s o quan i y
his phenomenon can be me (Gine ičius
e al., 2018). Based on he me hodology
p esen ed in his s udy, he dynamics o
economic de elopmen in some EU coun ies
we e de e mined. This me hodology, which
is e e ed o as he MDD me hod, p o ides
o he in eg a ion o uni o mi y indica o o
he de elopmen wi h i s in ensi y indica o .
Uni o mi y is de ined as he a io o he alue
o he pe iod unde conside a ion o he o al
leng h o he ac ual de elopmen ajec o y:
(1)
whe e DT is he indica o o economic
de elopmen T o e he pe iod unde
conside a ion, N is he du a ion o he pe iod
unde conside a ion e.g. yea s; pi is he change
in de elopmen o e he ime pe iod i (yea ) o
he ime span unde e iew; n is he numbe
o ime pe iods (i = 1, n) o he pe iod unde
conside a ion T.
The in ensi y o he de elopmen shall be
de e mined as ollows:
(2)
whe e Kp
T is he in ensi y indica o o he coun y’s
economic de elopmen o e he pe iod T
unde conside a ion; Q
T is he signi icance o
economic de elopmen a he end o pe iod T,
Qb
T is he signi icance o economic de elopmen
a beginning o pe iod T.
The p ocess o economic de elopmen o
socio-economic sys ems (SES) is a he mul i-
ace ed, complex and ambiguous, and i makes
sense o look o o he ways o quan i y i s
dynamics.
1. Possibili ies o Quan i ying
Sus ainabili yo Coun y’s
EconomicDe elopmen
The challenge posed – o quan i y he dynamics
o he coun y’s economic de elopmen –
equi es wo ques ions o be answe ed. Fi s ,
which p incipled models a e sui able o
quan i ying he in ensi y and con inui y o he
SES de elopmen p ocess; secondly, wha
indica o o indica o s can be used o measu e
hese sub-indica o s. The measu e o he
in ensi y o economic de elopmen o a coun y
can be aken as he alue exp essed by o mula
(2). The de elopmen consis ency indica o can
be o mula ed wi h he ollowing equi emen s:
i mus be easy o unde s and, he in o ma ion
needed o he calcula ions mus be easily
accessible, and, mos impo an ly, i mus allow
compa isons be ween en i ies a any le el:
economy o coun ies, egions, coun ies as
a whole, g oup o coun ies, e c.
The economic de elopmen o he coun ies
will be used o es he adequacy o he
homogenei y indica o p oposed in his s udy.
The analysis o li e a u e sou ces ha examine,
measu e and compa e his phenomenon
highligh s wo p incipal possibili ies. In one
57
1, XXIV, 2021
Economics
case i e e s o GDP pe capi a in a e i o ial
uni . I is conside ed o be a eliable indica o o
success, e lec ing upon he le el o economic
de elopmen achie ed in he coun y (Cha san,
2013; Čiegis e al., 2010; Bolcá o á & Kološ a,
2015; Babu & Da a, 2015). O he wise, he
economic de elopmen o he analyzed objec s,
usually coun ies, o hei egions, is e alua ed
elying upon one agg ega e alue combining
a la ge numbe o pa ial indica o s, which in
he au ho s’ opinion e lec upon he essen ial
aspec s o economic de elopmen . Recen ly,
hese me hods ha e been inc easingly used
o quan i y phenomena o all kinds. Impo ance
o indica o s a ailable on an equal basis o
de e mined by pee e iew (Song e al., 2017;
Tu skis, 2018; Tu skis e al., 2017; Boggia &
Co ina, 2010; P asce ic & P asce ic, 2017).
We may conside ha mul i-c i e ia
assessmen o economic de elopmen is mo e
accu a e compa ed o GDP pe capi a, because
enla gemen i sel is a complex p ocess ha
mani es s i sel in many aspec s. Fo malizing
hem and exp essing hem as indica o s allows
a mo e complex e alua ion o he phenomenon
unde conside a ion. On he o he hand, he
possibili ies o applying his p omising me hod,
o example o compa ing coun ies, a e limi ed
by he a ie y o indica o s ha a e included in
he e alua ion model and hei composi ion. The
numbe o such indica o s a ies om se e al
o se e al dozen in indi idual cases (Gine ičius
e al., 2018; Čiegis e al., 2010). E en when
a model is composed o a small numbe o
indica o s, hei composi ion is usually di e en .
This depends on a numbe o ci cums ances:
wha aspec s o he phenomenon in ques ion
a e dis inguished by he au ho s; o om access
o in o ma ion needed o calcula e alues o an
indica o , e c. These ci cums ances make i
di icul o use he esul s o he mul i-c i e ia
assessmen o economic de elopmen o
compa ing coun ies. Meanwhile, in e na ional
da abases and s a is ical yea books o
coun ies p o ide all he necessa y in o ma ion
on hei economic de elopmen on he basis
o pe capi a GDP. The e o e, his s udy will be
based on his indica o ( u he – GDP).
Two di e en coun ies, Swi ze land and
I aly, ha e been selec ed o illus a e he
p oposed me hodology. Swi ze land has
expe ienced a s eady g ow h o GDP pe capi a
o e he pe iod unde e iew. On he o he hand,
his p ocess is accompanied by qui e no iceable
luc ua ions in indi idual ime pe iods (yea s) o
he pe iod unde conside a ion. In I aly, du ing
he pe iod unde e iew, he a e o economic
de elopmen has ha dly inc eased, bu he e is
no ma ked luc ua ion ei he (Tab. 1, Fig. 1).
To quan i y he con inui y o he SES
de elopmen p ocess me hods based on
dynamic analysis o p ocesses can be used,
which means ha hey can assess he
magni ude o he luc ua ion o he phenomenon
unde conside a ion, he essen ial a ibu e o
dynamics, and ha allow o be in e p e ed. To he
me hods o his kind we may asc ibe coe icien s
used o analyze he con inui y o economic and
social p ocesses. Fi s and o emos , hese would
be he me hods o assessmen o inequali ies
in income and economy (Amin, 2006; A kinson
e al., 2002; Čiule ičienė e al., 2006a, b;
Čiule ičius & Čiule ičienė, 2008; Ib agimo e
al., 2018; Kawachi & Kennedy, 1999; Kawachi e
al., 1999; Ku owska-Pysz e al., 2018).
Alongside he s uc u al coe icien s,
some special indica o s a e needed o assess
he economic and social inequali y o he
popula ion (Čiule ičienė, 2006a; Lazu ka,
2002). The mos commonly used is he Gini
coe icien (index). The a io a ies om 0 o 1
o om 0 o 100 pe cen . The la ge i is, he
g ea e is he inequali y. This indica o is widely
used in in e na ional compa isons. The Gini
coe icien is de e mined om he Lo enz cu e
(Dagum, 1980; G usky, 2001; Rudzkienė, 2005;
Coun y
Yea s
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
I aly 27.6 26.4 26.8 27.3 26.7 26.5 26.7 27.2 27.9 28.5
Swi ze land 49.3 50.2 56.1 63.7 65.0 64.1 65.3 74.0 72.4 72.6
Sou ce: www.eu os a .com
Tab. 1: G oss domes ic p oduc (GDP) pe capi a in EUR
58 2021, XXIV, 1
Economics
B a čiko ienė & De eiky ė, 2006; Jann, 2016).
The idea o his cu e is ha , i i is
possible o de e mine he o al inequali y o
he indica o unde conside a ion, he e comes
he oppo uni y o analyze he na u e o i s
dis ibu ion be ween he indi idual ime spans o
he pe iod unde conside a ion. Fo example, o
depic g aphically he dis ibu ion o households
by income, hey a e a anged in ascending o de
on he axis X o he o dina e sys em, indica ing
he pe cen age o he popula ion (households);
meanwhile depic ing he de e ed pe cen age
o hei income in axis Y (Fig. 2).
The na u e o he Lo enz cu e and he
Fig. 1: GDP pe capi a o he coun ies conce ned
Sou ce: own based on www.eu os a .com
Fig. 2: Lo enz cu e
Sou ce: own based on www.eu os a .com
59
1, XXIV, 2021
Economics
o de in which i is cons uc ed allow i o be
applied o assess he homogenei y o he
coun y’s economic de elopmen . I s o de
would be as ollows.
Fi s , le us d aw a squa e wi h sides
100×100 and i s diagonal. The cumula i e
alues o he economic de elopmen du ing
he ime spans o he pe iod unde e iew,
exp essed as a pe cen age, a e plo ed on
he abscissa axis, and he pe cen age o he
ac ual de elopmen o he ime pe iods a e
plo ed on he o dina e axis. The in e sec ion
o each o hese deciles will gi e a pa icula
poin . Connec ing he poin s in a s aigh line
gi es a Lo enz cu e. I e lec s upon he ac ual
cou se o he p ocess o economic de elopmen
o e he pe iod unde conside a ion, and he
diagonal o he squa e ep esen s i s ideal
de elopmen .
The Lo enz cu e is e y widely applied in
ma hema ics, especially in economic s a is ics.
I is sui able o examining he inequali ies o
a wide a ie y o phenomena ep esen ed by
in e al lines. I s deg ee is ep esen ed by he
con exi y o he cu e, e.g. he dis ance om
he diagonal o he squa e; he s eepe he
magni ude cu e is, he lesse he dis ance om
he cu e i shows; he less i is dis an om
he diagonal, he lesse he di e si ica ion o
he dis ibu ion is, and ice e sa, as he cu e
mo es away om he diagonal, he dis ibu ion
i egula i y inc eases.
The Gini coe icien (Dagum, 1980; Gu sky,
2001; Rudzkienė, 2005) is used o es ima e
quan i a i e dis ibu ion compa isons based
on Lo enz cu e. I is de e mined as ollows
(Fig. 2):
(3)
The smalle he dis ibu ion i egula i y
is, which means he close he cu e is o he
diagonal o he squa e, he lowe he alue o
he ac o G we see.
I we equa e he a ea S1 + S2 o S, hen om
Fig. 2. ollows ha S1 = S – S2. Then
(4)
In ou case, when he case o quan i ying
he dynamics o SES economic de elopmen
is unde e iew, he smalle he a ia ion in
de elopmen and he close he Lo enz cu e
app oaches he squa e o he squa e, he mo e
e en he expansion is, so he Gini coe icien
mus be ans o med in his way.
(5)
He e TG is he coe icien desc ibing he
con inui y o SES economic de elopmen .
Fig. 1 and o mulas (4) and (5) show ha
in ideal case o de elopmen , S1 = 0, and
TG = 1.0.
Quan i a i e assessmen o he economic
de elopmen dynamics o he coun ies
conce ned was ca ied ou on he basis o he
abo e me hodology.
2. Quan i yingEconomic
De elopmen Dynamics
in Coun ies
As s a ed abo e, we quan i y he dynamics o he
coun y’s economic de elopmen on he basis o
pe capi a GDP. I s luc ua ions in he pa icula
ime spans o he pe iod unde conside a ion
may be e y une en (Tab. 1, Fig. 1). The same
ep esen a i e coun ies – I aly and Swi ze land
– a e aken o he calcula ions. F om Fig. 1 i
is seen ha Swi ze land is unde going in ense
de elopmen , whe eas I aly is expe iencing
s agna ion in i s de elopmen . On he o he hand,
in I aly, de elopmen is s able, wi h no majo
luc ua ions, while in Swi ze land, luc ua ions
a e signi ican ly highe . The e o e, i can be
assumed ha he e is a ela ionship be ween
de elopmen in ensi y and sus ainabili y,
which means ha he in ensi y in luences he
uni o mi y. F om a me hodological poin o
iew, i would be ad an ageous o elimina e
he in luence o in ensi y om he indica o o
sus ainable de elopmen and o e alua e i
la e , when a complex sus ainable de elopmen
indica o is c ea ed. O he wise, he low le el o
de elopmen may be o se by i s high in ensi y
and esul in an inadequa e pic u e.
The di e en economic de elopmen
si ua ions o he coun ies in Fig. 1 need o be
quan i ied. To ha end, i is i s o all necessa y
o de e mine he de elopmen si ua ion in ela ion
o which he ac ual si ua ion will be assessed. In
o he wo ds, we need o ha e a benchma k o
de elopmen con inui y o an ideal de elopmen
case. This can be said o be he case when he

60 2021, XXIV, 1
Economics
SES de elopmen inc emen o e he same
pe iod o ime, such as he yea , is he same. In
his case, he de elopmen ajec o y will coincide
wi h he diagonal o he squa e (Fig. 1), and he
de elopmen i sel will look like his (Fig. 3).
F om Fig. 3 i can be seen ha he
Fig. 3: Ideal case o SES dynamics o de elopmen
Sou ce: own
Fig. 4: Changes in de elopmen o e ime span i; i, i + 1 o he pe iod unde e iew
Sou ce: own based on Gine ičius e al., 2018
61
1, XXIV, 2021
Economics
uni o mi y o SES de elopmen uns ideally
∆qi = ∆qi + 1 (whe e ∆qi is he inc ease in
de elopmen o he ime pe iod i). In eal li e we
usually see a si ua ion whe e ∆qi≠∆qi + 1, which
means we see g ea e o lesse luc ua ions in
de elopmen o e pa icula ime pe iods o he
pe iod unde e iew. In his case, he uni o mi y
o de elopmen can be quan i ied based on he
de elopmen al di e ences o hese pe iods
∆∆q=qi – qi + 1 (Fig. 4).
We exp ess he a ia ions in he economic
de elopmen o he coun ies shown in Fig. 1
by he Lo enz cu e. Fo his pu pose, we will
use Tab. 1 o calcula e he absolu e magni udes
o de elopmen di e ences be ween adjacen
ime pe iods (Tab. 2).
We will p esen he di e ences in Tab. 2 in
ascending o de . Such a p ocedu e is possible
because i will no a ec he a ea S2 o he
Lo enz cu e S2, and he a ea S1 (Tab. 3).
Based on Tab. 3, we de e mine he ela i e
weigh o he di e ences as a pe cen age (Tab. 4).
Coun y Yea s
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
I aly 0.2 1.2 0.4 0.5 0.6 0.2 0.2 0.5 0.7 0.6
Swi ze land 3.1 0.9 5.9 7.6 1.3 0.9 1.2 8.7 1.6 0.2
Sou ce: own
Coun y
Yea s
To al
12345678910
I aly 0.2 0.2 0.2 0.4 0.5 0.5 0.6 0.6 0.7 1.2 5.1
Swi ze land 0.2 0.9 0.9 1.2 1.3 1.6 3.1 5.9 7.6 8.7 31.4
Sou ce: own
Coun y Yea s To al
12345678910
I aly 3.9 3.9 3.9 7.8 9.8 9.8 11.8 11.8 13.8 23.5 100
Swi ze land 0.6 2.9 2.9 3.8 4.1 5.1 9.9 18.8 24.2 27.7 100
Sou ce: own
Coun y
Yea s
12345678910
I aly 3.9 7.8 11.7 19.5 29.3 39.1 50.9 62.7 76.5 100
Swi ze land 0.6 3.5 6.4 10.2 14.3 19.4 29.3 48.1 72.3 100
Sou ce: own
Tab. 2: Di e ences in economic de elopmen o he coun ies conce ned
o e he pe iods conside ed
Tab. 3: Ascending o de o economic de elopmen di e ences be ween coun ies
o he pe iod unde e iew
Tab. 4: Compa a i e weigh s o di e ences in economic de elopmen o he coun ies
conce ned o e he pe iod o ime in pe cen
Tab. 5: Cumula i e alues o compa a i e weigh s o di e ences in economic
de elopmen o he coun ies unde e iew o he conside ed pe iod
62 2021, XXIV, 1
Economics
Based on Tab. 4, we de e mine he
cumula i e alues o he weigh s.
Based on Tab. 5, we can d aw he Lo enz
cu es o he economic de elopmen o he
coun ies unde conside a ion (Fig. 5–6).
The ques ion is how o assess he s a e o
SES de elopmen con inui y based on hese
esul s. The li e a u e p o ides he ollowing
Gini coe icien a ing scale (Lando e al., 2018;
Lyon e al., 2016) (Tab. 7).
Based on Tab. 7 and o mula (2), i is
possible o p o ide he ollowing scale o
assessing he sus ainabili y o economic
de elopmen in a coun y (Tab. 8).
Tab. 8 shows ha I aly has a mode a e
deg ee o economic de elopmen and
Swi ze land a low deg ee o sus ainabili y.
The TG ac o o coun ies’ economic
de elopmen unde es ima es i s in ensi y.
Meanwhile, om Fig. 1. i can be judged o
Fig. 5: Lo enz cu e o I alian economic de elopmen
Sou ce: own
Fig. 6: Lo enz cu e o Swiss economic de elopmen
Sou ce: own
63
1, XXIV, 2021
Economics
in luence uni o mi y. The in eg a i e size o
hese wo aspec s o de elopmen will gi e
a snapsho . I can be se up as ollows:
(6)
whe e is he index o economic de elopmen
dynamics o coun y i; Kpi is he a e o economic
de elopmen in ensi y o coun y i; and TGi is
he coe icien o homogeneous o economic
de elopmen o coun y.
I is ound ha I aly equals 1.03 and
Swi ze land 1.47. On his basis, an in eg al
index o hei economic de elopmen dynamics
can be calcula ed. I is 0.85 in I aly and 0.87 in
Swi ze land.
Such esul s o economic de elopmen
dynamics o he coun ies a e ecei ed by
conside ing ha he uni o mi y and in ensi y o
de elopmen a e equally signi ican in e ms
o dynamics. The si ua ion would change
subs an ially i we conside he impo ance
o he pa ial indica o s TG and Kp. I can
be assumed ha sho - e m luc ua ions in
economic de elopmen o e indi idual ime
pe iods (yea s) o he pe iod unde e iew
ha e a signi ican ly lesse impac on he s a e
o social de elopmen o he coun y compa ed
o he in ensi y o de elopmen co e ing he
whole pe iod unde e iew. Expe s es ima ed
he impo ance o de elopmen in ensi y o
i s dynamics a 70 pe cen ou o 100, and
luc ua ions in uni o mi y a 30 pe cen . In his
case, a gene alized indica o o he dynamics
o a coun y’s economic de elopmen can
be de e mined by a mul i-c i e ia e alua ion,
o example, by he SAW me hod, which is
exp essed as ollows (Hwang & Yoon, 1981):
(7)
he e Di is an index o coun y’s i dynamics
o economic g ow h; wi is an impo ance o
coun yʼs index o dynamics o economic g ow h
Coun y Coe icien
G TG
I aly 0.30 0.70
Swi ze land 0.49 0.51
Sou ce: own
Gini coe icien alue G Conclusion
G < 0.25 Ve y low le el
0.25 ≤ G ≤ 0.35 A e age le el
G > 0.35 High le el
Sou ce: own
Value o coe icien TG Conclusion
TG > 0.75 Ve y high deg ee o dynamics o de elopmen
0.75 > TG > 0.65 A e age deg ee o dynamics o de elopmen
TG < 0.65 Low deg ee o dynamics o de elopmen
Sou ce: own
Tab. 6: Resul s o he calcula ion o de elopmen dynamics o he analyzed coun ies
o 2008–2012
Tab. 7: G ading o Gini coe icien acco ding o uni o mi y o da a dis ibu ion
Tab. 8: Coe icien TG g ada ion by homogenei y