Page 403 - Special Topic Session (STS) - Volume 4

STS2320 Mohamed A I.

Composite indices and traditional data – The

global knowledge index
Mohamed A Ismail
Department of Statistics, Cairo University, Egypt

Abstract
The Global Knowledge Index (GKI) consists of six sectoral indices and one
supporting index focusing on the general enabling environment. Each of these
seven indices was constructed in accordance with standard international
methodologies for the design of composite indicators. The GKI is structured
with a hierarchy of five levels: index, constituting indices (also referred to as
sectoral indices), pillars, sub-pillars and variables. Each of the six sectoral
indices has a weight of 15 percent, while the general enabling environment
has a weight of 10 percent.
The selection of variables (individual variables) included in the construction of
each of the seven indices was based on a well-defined scientific methodology
drawn from an extensive review of relevant local and international literature,
as well as the experiences and concepts of international organizations and
agencies. It also relied on an intensive consultation process that engaged
experts.
Principal components analysis was used to confirm the consistency of the
selected variables and the structure of their classification into the various sub-
indices, further supporting the consistency of the broader conceptual context
across the variables and their classification in the sub groups - for which the
explained variance ratio in most cases exceeded 50 percent. The results of the
in-depth correlation analysis and Cronbach’s Alpha coefficient (exceeding 0.70
in most cases) confirmed the validity of the selection and classification of the
variables.
Weights assigned for the seven constituent indices range from equal
weighting and budget allocation to factor analysis. The weights produced by
using both the budget allocation and factor analysis methods were consistent
with each other and with the initial weights estimates, based on the intellectual
and conceptual framework. The arithmetic aggregation formula was used to
calculate all composite indicators of the Index.

Keywords
Knowledge Index; Education; TVET; ICT; Budget Allocation

1. Introduction
The Global Knowledge Index (GKI) aims to measure the multidimensional
concept of knowledge. The concept is a fluid one, often linked to related

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