Research on Economic Influencing Factors of Zhejiang Province Based on Principal Component Analysis

Abstract

Zhejiang Province, a relatively well-rounded province in China's economic development, has seen significant fluctuations in its economic performance in the post-pandemic era. Therefore, studying the economic influences behind this phenomenon will guide its future development in the long run. This paper adopts the method of principal component analysis, selecting the economic data of Zhejiang Province from 2013 to 2021. It classifies and studies the economic evaluation indicators according to the criteria of economic internal and external circulations combining the relevant circumstance of the post-pandemic era. The conclusion is that the internal circulation is of higher importance and priority compared to the external circulation of the economy, which is closely related to the pandemic resistance of the economy. This leads to a proposal to improve the resistance of economy to pandemic by developing the economic internal circulation. Thus, Indirect improvements to the proportion of the economic external circulation could be accordingly formulated.