Changes in the Regional Development of Romania (2000–2019), Measured with a Multidimensional PEESH Index

Abstract

Measuring development is a long-standing challenge in the social sciences. Although multidimensional and multivariate approaches to development present several conceptual and/or methodological problems, some studies have pointed out that the unidimensional view of economic progress has failed on a large scale. The main purpose of our article is to elaborate a multidimensional composite index called the PEESH (population, economic, education, social, and health) Development Index, for measuring socio-economic development in Romania with a territorial profile. The PEESH DI index presented in this paper contains five sub-dimensions: population dynamics, economy and labor force, education, social conditions and housing, and health and life conditions, including 22 core indicators. The components of the resulting multidimensional index were weighted using factor analysis and then aggregated transversely into a composite index. Our results show that the differentiated increase of the indicators composing the PEESH DI resulted in a certain restructuring of the development hierarchy of Romania’s counties between 2000 and 2019. These empirical facts strengthen the idea that development cannot be reduced to only economic growth, it comprises an important social dimension as well. Finally, we have strongly argued in this paper that it is time to switch from a single-sided and reductionist perspective of the measurement of regional disparities, within the framework of the Cohesion Policy in the European Union, to a wider and multidimensional perspective, reflecting the complex character of the development process.