The Global Economic Development Index: an economic, social, and institutional approach; El Índice de Desarrollo Económico Global: un enfoque económico, social e institucional

Abstract

This paper proposes an original composite index, the Global Economic Development Index (GEDI), uniquely integrating economic, social, and institutional factors. GEDI distinguishes emerging from developed economies, identifying specific economic, social, and institutional challenges and opportunities. It examines 129 economies, representing approximately 95% of global GDP in 2017, using over 30 indicators across 10 variables, including financial development, income distribution, environmental sustainability, and corruption. This index improves upon traditional income-based classifications used by institutions such as the World Bank (WB) and International Monetary Fund (IMF), which often group diverse economies like China, Vietnam, and Bulgaria together despite significant structural and developmental differences. Thus, GEDI provides a more comprehensive understanding of economic gaps between developed and emerging economies.