Financial development index (2010) - ClimAfrica WP4

The “financial development index” symbolizes the degree of financial development of a country in 2010. Well-developed financial systems may reduce climate change impact because it underlying the diffusion of services and tertiary economic activity that reduce the dependence to agriculture income of a certain population. The index results from the first cluster of the Principal Component Analysis preformed among 9 potential variables. The analysis identifies three dominant variables, namely “investment per capita”, “global commerce volume per capita” and “gross national saving per capita”, assigning weights of 0.35, 0.35 and 0.3, respectively. Before to perform the analysis all variables were log transformed to shorten the extreme variation and then were score-standardized (converted to distribution with average of 0 and standard deviation of 1) in order to be comparable. Country based data for “investment per capita” (expressed as a ratio of total investment in current local currency and GDP in current local currency. Investment or gross capital formation is measured by the total value of the gross fixed capital formation and changes in inventories and acquisitions less disposals of valuables for a unit or sector), “global commerce volume per capita” (expressed as a ratio of commerce volume in current local currency and GDP in current local currency. Commerce volume is the sum of exports and imports of goods and services) and “gross national saving per capita” (expressed as a ratio of gross national savings in current local currency and GDP in current local currency. Gross national saving is gross disposable income less final consumption expenditure after taking account of an adjustment for pension funds) were collected jointly from International Monetary Fund and World Bank (for global commerce volumes) and records the average of the period 2008-2012. The variables represent the share of GDP, thus they were multiplied by total GDPppp in order to have absolute value in international dollars and then divided by population to calculate the per capita values of each variable. The tabular data were linked by country unit to the national boundaries shapefile (FAO/GAUL) and then converted into raster format (resolution 0.5 arc-minute). Investment and global commerce per capita are proxy of economic transition out of agriculture, while national gross saving represents the financial resources buffer that can facilitate the implementation of climate change adaptation strategies. This dataset has been produced in the framework of the “Climate change predictions in Sub-Saharan Africa: impacts and adaptations (ClimAfrica)” project, Work Package 4 (WP4). More information on ClimAfrica project is provided in the Supplemental Information section of this metadata.