Local development index for ecuador with 2010 data

Abstract

Subnational level development analysis has become relevant in recent years, leading to the emergence of several indices that incorporate economic, social and environmental dimensions. The few studies carried out in Ecuador to measure development do not consider the environmental dimension. The purpose of this article is therefore to present an index to measure local development in the country using Principal Component Analysis, and taking into account economic, social and environmental variables. Results shows that there are cantons with a higher level of development, and ones with a lower level of development (located principally in the North Coastal and Amazon region). The degree of local development in the country was found to be highly hete-rogenous. This index could be used as a tool for the analysis of public policies for local development and for more efficient subnational resource allocation.