Proposal for a local economic development index for the North Central Region of Mexico

Abstract

The general objective of this work is to determine a synthetic index of local economic development that allows the evaluation of the economic development of the states of the North Central Region of Mexico. To this end, it was necessary to use multivariate statistical techniques to reduce a set of selected indicators to a single index that explains almost all the information contained in the original indicators. In addition, the results of the index are compared with the classification technique of hierarchical clusters, multidimensional scaling analysis and then an evaluation is made applying regional analysis techniques.

The practical application of this work was carried out taking into account the information from the states of the North Central Region of Mexico in the period 2012-2017, which demonstrated the practical feasibility of this type of analysis. As a result of the analysis, a set of valid conclusions was reached for the use of this type of techniques for evaluation in the states.