A composite index to explain variations in poverty, health, nutritional status and standard of living: Use of multivariate statistical methods

Summary 

Objectives

To calculate the Human Development Index (HDI) and Human Poverty Index (HPI) of Indian states; to trace the indicators useful for finding variations in poverty; and to develop a composite index that may explain variations in poverty, health, nutritional status and standard of living.

Study design

Cross-sectional study.

Methods

The HDI and HPI were calculated for different Indian states. A set of possible indicators varying between rich and poor states of India was identified with the use of discriminant function analysis. A composite index has been developed for measuring the standard of living of Indian states with the help of factor analysis.

Results

Demographic, socio-economic, health and dietary indicators play a major role in determining the real standard of living. Poverty, standard of living and human development depend on multiple factors. The existing indices, such as HDI and HPI, use income indicators to measure the standard of living, and do not take into account diet and nutritional status indicators. The proposed index was found to be more suitable for measuring the real standard of living and human development, as it is a comprehensive index of income and non-income indicators. Further validation may be carried out for different populations.

Conclusions

Discriminant function analysis and factor analysis were used to assess health inequality and standard of living among Indian states. The proposed multi-dimensional index may provide a better picture of human development. Further work is of interest for other populations.

Keywords: Human Development Index (HDI), Human Poverty Index (HPI), Multivariate statistical methods, Factor analysis, Index of standard of living