Quantitative assessment of the dynamics of the economic development of socioeconomic systems based on the MDD method

Abstract

An inherent characteristic of socioeconomic systems (SES) is their development, which is a prerequisite for their existence. Analysing the development, as well as comparing the subjects at a variety of levels (companies, countries, regions, etc.) for other purposes requires the development process to be measured in a quantitative manner. The development process is characterised by its dynamics, which in turn may be measured using two indicators: the intensity of the development; and its consistency over the reference period. The former measurement is represented as a ratio between the development values at the beginning of the period and those at the end, while the consistency of the SES economic development will be demonstrated as a ratio of the length of the reference period to the sum of the lengths of the trajectories representing the development over individual time periods. The calculations of the economic development of a number of countries carried out through this research have confirmed that the proposed methodology is appropriate. The methodology has been named, with certain qualifications, the MDDSS (Measuring of the Dynamic of the Development of a Socioeconomic System).