Measurement of Regional Disparities (Level of Development)

Some of the important techniques in the measurement of disparities.

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A. Composite Index Method

  1. By taking a single indicator – e.g. Agriculture or industrial

C.D.I = Pi/PI x 100

  • Where, CDI = coefficient of development factor ‘i’
  • Pi = % of factor ‘i’
  • PI = mean % value factor in the whole region.

2. By considering all the indices of development –

CID = Cdi1 + Cdi2 + Cdi3 + . . . . . . . + Cdin / N

  • Where, CID = Composite Index of Development
  • N = No. of variables.
  • Cdi = coefficient of development factor ‘i’

B. Normalization/Standardization Method

  • This is Prof. Kundus’s method
  • We have select the indicator for measuring the development.
  • If we add the values of this indicator directly.
  • The technique of division by mean i.e. x suggested by ‘Kundu’ is used for this purpose.
  • Indicators are divided by their corresponding mean.
  • After arranging these composite index values in descending order.
  • Higher the value higher the development region.
  • You make can understand the developed, moderate and backward levels of the region.

C. Ranking Method

  • This is Prof. Ashok Mitra’s Method.
  • We select some of the indicators e.g. socio-cultural and economic prospects.
  • We calculate the ranks of the values of each indicator.
  • finally added the rank of each observation of each indicator, putting rank in descending order.
  • If ranks are 1,2,3,4,…… n highest value and large.
  • The lower the value higher is the development and vice versa.

D. ‘Z’ Score Method

  • In this method score of each areal unit is divided by the average for the region as a whole, to calculate what is known as the ‘z’ score method.
  • Summation of the ‘z’ score for all indicators of each areal unit indicates the level of development, the higher the value higher will be the development.
  • ‘Z’ score is also calculated alternatively by subtracting the mean from actual values and dividing it by S.D.

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