Computing the Survey scores
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This box presents the methodology applied to compute the country scores for the vast majority of economies included in The Global Competitiveness Report 2016–2017 (see text for exceptions).
For any given Survey question i, country c’s final score
is given by:
is country c’s score on question i in year t, with t = 2015, 2016, as computed following the approach described in the text; and
is the weight applied to country c’s score in year t (see below).
The weights for each year are determined as follows:
where is the sample size (i.e., the number of respondents) for country c in year t, with t = 2015, 2016. a is a discount factor. Its value is set at 0.6. That is, the 2015 score of country c is given 2/3 of the weight given to the 2016 score.
Plugging Equations (2a) and (2b) into (1) and rearranging yields:
In Equation (3), the first component of the weighting scheme is the discounted-past weighted average. The second component is the sample-size weighted average. The two components are given half-weight each. One additional characteristic of this approach is that it prevents a country sample that is much larger in one year from overwhelming the smaller sample from the other year.
The formula is easily generalized. For any two consecutive editions t1 and t2 of the Survey, country c’s final score on question i is computed as follows:
As noted in the text, there are a number of exceptions to the approach described above. In illustrating them below, we use actual years—rather than letters—in equations for the sake of concreteness.
In the case of Survey questions that were introduced in 2016, where, by definition, no past data exist, the weight applied to the 2015 score is wc2015 = 0 and the weight applied to the 2016 score is wc2016 = 1. Equation (1) simply is qi,c2015–16 = qi,c2016. The same is true for the Democratic Republic of Congo. In this case, we have qi,c2015–16 = qi,c2016.
In the case of countries for which the 2016 data were discarded, we rely on the results from last year’s edition as a proxy. They were calculated using Equation (1), but instead of using the 2015 and 2016 editions of the Survey, they were derived from the 2014 and 2015 editions, respectively. Therefore, we have qi,c2014, 2015 = wc2014 3 qi,c2014 1 wc2015 3 qi,c2015.
Finally, in the case of countries whose data failed the inter-year robustness check last year and for which the 2015 data were discarded, we use the Survey data from 2014 instead, and combine them with those of 2016 to compute the scores. Equation (1) then becomes: qi,c2014, 2016 = wc2014 3 qi,c2014 1 wc2016 3 qi,c2016. The same treatment applies for those countries where the Survey was not administered in 2015 but was conducted in 2014 and in 2016. This is the case for Barbados and Yemen.
Example of score computation
For this example, we compute the score of Paraguay for the indicator Burden of government regulation, which is included in the Global Competitiveness Index (indicator 1.09) and derived from the following Survey question: “In your country, how burdensome is it for companies to comply with public administration’s requirements (e.g., permits, regulations, reporting)?
[1 = extremely burdensome; 7 = not burdensome at all] | 2015–16 weighted average.” This question is not a new Survey question and Paraguay did not fail the inter-year robustness test either this year or last year. Therefore the normal treatment applies, using Equation (1). Paraguay’s Survey score was 3.61 in 2015 and 3.33 in 2016. The weighting scheme described above indicates how the two scores are combined. In Paraguay, the size of the sample was 73 in 2015 and 79 in 2016. Using a = 0.6 and applying Equations (2a) and (2b) yields weights of 44.0 percent for 2015 and 56.0 percent for 2016 (see Table 2). The final country score for this question is therefore:
This is the final score used in the computation of the GCI. Although numbers are rounded to two decimal places in this example and to one decimal place in the Paraguay country profile, exact figures are used in all calculations.