Quality over quantity: developing a PCA-Based framework for measuring economic growth quality - evidence from Armenia

Yuri Suvaryan, Shogher Poghosyan, Hovhannes Asatryan and Meri Manucharyan

Post-Communist Economies, 2026, vol. 38, issue 6, 699-720

Abstract: This study develops a multidimensional Quality of Growth Index (QGI) to evaluate the qualitative dimensions of economic performance in post-transition economies. The framework encompasses six interrelated pillars (Inclusivity, Sustainability, Productivity, Innovation, Social Development, and Governance) and employs Principal Component Analysis (PCA) to generate objective, data-driven weights for each component. Using Armenia as a case study (2007–2023), the analysis reveals a shift from quantity-driven to quality-oriented growth, marked by rising sustainability and innovation yet constrained by governance inefficiencies. Robustness tests confirm the statistical stability of the QGI under alternative model specifications, while its evolution demonstrates resilience during major shocks, including the 2009 global crisis and the 2020 pandemic. The results underscore that in post-transition economies, sustainable development increasingly depends on advances in innovation, human capital, and institutional quality. The proposed QGI provides policymakers with a replicable framework to assess and strengthen the structural quality and resilience of economic growth.

Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/14631377.2026.2674617 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:pocoec:v:38:y:2026:i:6:p:699-720

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CPCE20

DOI: 10.1080/14631377.2026.2674617

Access Statistics for this article

Post-Communist Economies is currently edited by Roger Clarke

More articles in Post-Communist Economies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().