I invite your comments on what characteristics would you use, if you can not use GDP, income, unemployment (because these are not available for small "region", e.g. town, village). And namely how would you deal with this characteristics or, and this the crucial, what methods you would use?
My suggestion: You can use qualitative approaches with a simple case strategy (small areas and specific conditions different from other regions). Furthermore, it can be used snowball technique by determining the key informant who is very know the topic under study. Thus, the researcher can obtain valid data from the appropriate informant, thus representing the specification of the research location and not depend on the primary data whose truth can not be ascertained. Thank you
Almost any indicator of development can be measured at the local level (state, province, municipality, etc.). Most countries already have this data but they only published the aggregated figures. Thus, you would need access to disaggregated economic data. Once you have that, if you're interested in more than just economic development, you could do local surveys using things like the Multidimensional Poverty Index (MPI) or the Social Progress Index (SPI)
Social Progress Index - https://www.socialprogressindex.com/
Multidimensional Poverty Index - http://www.ophi.org.uk/multidimensional-poverty-index/
Both SPI and MPI are currently being used for local surverys
my suggestion is using matching analysis. look at this paper
Pender, John, and Richard Reeder. 2011. Impacts of Regional Approaches to Rural Development: Initial Evidence on the Delta Regional Authority, ERR-119, U.S. Department of Agriculture, Economic Research Service, June 2011.
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