Factor analyses for economic growth in EU-28 and MENA-4 countries

Abstract

This study uses eight main different statistical fields, as components between 2005-2014. The following step of the research is that the factor analyses, when in case of the first FACT1 three variances of the first component are, namely GDPVol2014, UnEmploy2014 and RisPov2014 are compared with two variances of the second component, namely GovDebt2014 and SocProt2014. In the second FACT2 analyse three variances of the first component, namely GDPVol2014, UnEmploy2014 and RisPov2014 are compared with two variances of the third component, namely LLeam2014 and GDPcap2014. The cluster analyse system separates the EU-28 member states and shows how these countries are closed by their special performance. The biggest group includes 22 member states closed to each other in field of their economic performance. The biggest country group originally also can be separated into 10 smaller country-group. The second country-group was consisting of two member states, namely France and Portugal, which countries were connected by mostly similarly economic growth rate with different economic developed levels. The third country-group included Spain, Cyprus, Greece and Ireland, where the low economic growth and low level of GDP volume growth were closed in case of Spain and Cyprus, but in Greece the unemployment rate was so highly and Ireland realised highly strong GovDebt2014 and SocProt2014 in its economic performance with low level for GDPVol2014 and GDPcap2014. The factor analyses and dendrogram system can show the clear selection methods for the economies, which help the researchers and policy makers to create the economic policy strategy and financial support for those countries which have the biggest backwardness in their economic development.