IDEAS home Printed from https://ideas.repec.org/a/vrs/reoecp/v20y2020i3p379-401n6.html
   My bibliography  Save this article

Categorization of the EU Member States in the Context of Selected Multicriteria International Indices Using Cluster Analysis

Author

Listed:
  • Onuferová Erika
  • Čabinová Veronika
  • Matijová Mária

    (University of Prešov in Prešov, Faculty of Management, Department of Finance, Konštantínova 16, 080 01 Prešov, Slovak Republic)

Abstract

The main aim of the paper was to analyse the economic and social development of the European Union (EU) member states (28 countries) on the basis of selected five multicriteria indices (the Global Competitiveness Index, the Economic Freedom Index, the Global Innovation Index, the Corruption Perceptions Index, the Human Development Index). To perform settled aim, a multidimensional classification of EU countries for years 2011 and 2018 using cluster analysis was realized. The purpose of the analysis was to categorize the individual EU countries into clusters and to find out to what extent the position of EU member states has changed in terms of selected international indices over the analysed period. Based on the findings, it is arguable that a major part of the EU member states cluster into the same groups based on the selected indices assessment, regardless of the time period. However, six countries (Czech Republic, Estonia, Germany, Latvia, Lithuania, and United Kingdom) improved their position during the period under review and ranked into the cluster of more prosperous countries in 2018. The rate of change (improvement) was quantified at the level of 21.43%. Based on the results, Latvia and Lithuania were the most similar countries in terms of economic prosperity (Euclidean distance reached the level of 3.08), while the least similar countries were Greece and Sweden (Euclidean distance reached the level of 70.8). Declining Euclidean distances indicate that economic disparities of the individual EU countries have decreased in the period under review. This paper aims at developing the research to find out how, besides hierarchy, we can analyse the EU member states from the perspective of various multicriteria indices. The four proposed clusters could be used as a starting point for future policy reforms, pointing to the weaknesses of various countries.

Suggested Citation

  • Onuferová Erika & Čabinová Veronika & Matijová Mária, 2020. "Categorization of the EU Member States in the Context of Selected Multicriteria International Indices Using Cluster Analysis," Review of Economic Perspectives, Sciendo, vol. 20(3), pages 379-401, September.
    • Handle: RePEc:vrs:reoecp:v:20:y:2020:i:3:p:379-401:n:6
    DOI: 10.2478/revecp-2020-0018
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/revecp-2020-0018
    Download Restriction: no
    File URL: https://libkey.io/10.2478/revecp-2020-0018?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Valentina Diana Rusu & Adina Dornean, 2019. "The Quality of Entrepreneurial Activity and Economic Competitiveness in European Union Countries: A Panel Data Approach," Administrative Sciences, MDPI, vol. 9(2), pages 1-21, April.
    2. Tomeš, Zdeněk, 2017. "Do European reforms increase modal shares of railways?," Transport Policy, Elsevier, vol. 60(C), pages 143-151.
    3. Dana Kiseľáková & Beáta Šofranková & Veronika Čabinová & Erika Onuferová, 2018. "Competitiveness and sustainable growth analysis of the EU countries with the use of Global Indexes' methodology," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 5(3), pages 581-599, March.
    4. Menbere Workie & Edita Hekelová, 2016. "Is The Global Competitiveness Index Informative?," CBU International Conference Proceedings, ISE Research Institute, vol. 4(0), pages 132-141, September.
    5. Robert Stefko & Beata Gavurova & Kristina Kocisova, 2018. "Healthcare efficiency assessment using DEA analysis in the Slovak Republic," Health Economics Review, Springer, vol. 8(1), pages 1-12, December.
    6. Małgorzata Stec & Mariola Grzebyk, 2018. "The implementation of the Strategy Europe 2020 objectives in European Union countries: the concept analysis and statistical evaluation," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(1), pages 119-133, January.
    7. Boris Nikolaev, 2014. "Economic Freedom and Quality of Life: Evidence from the OECD’s Your Better Life Index," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 29(Fall 2014), pages 61-96.
    8. Dana Kiseľáková & Beáta Šofranková & Miroslav Gombár & Veronika Čabinová & Erika Onuferová, 2019. "Competitiveness and Its Impact on Sustainability, Business Environment, and Human Development of EU (28) Countries in terms of Global Multi-Criteria Indices," Sustainability, MDPI, vol. 11(12), pages 1-25, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dana Kiseľáková & Beáta Šofranková & Miroslav Gombár & Veronika Čabinová & Erika Onuferová, 2019. "Competitiveness and Its Impact on Sustainability, Business Environment, and Human Development of EU (28) Countries in terms of Global Multi-Criteria Indices," Sustainability, MDPI, vol. 11(12), pages 1-25, June.
    2. Olalekan Charles Okunlola & Anthony E. Akinlo, 2021. "Does economic freedom enhance quality of life in Africa?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 68(3), pages 357-387, September.
    3. Argatu Ruxandra & Păunescu Carmen, 2019. "Romania and its poverty-alleviating competitiveness: a Central and Eastern European outlook," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 13(1), pages 435-447, May.
    4. Buitrago R., Ricardo E. & Barbosa Camargo, María Inés, 2021. "Institutions, institutional quality, and international competitiveness: Review and examination of future research directions," Journal of Business Research, Elsevier, vol. 128(C), pages 423-435.
    5. Beata Gavurova & David Tucek & Viliam Kovac, 2019. "Investigation of Relationship Between Spatial Distribution of Medical Equipment and Preventable Mortality," IJERPH, MDPI, vol. 16(16), pages 1-33, August.
    6. Jeremy Horpedahl & Jeremy Jackson & David Mitchell, 2019. "Is Economic Freedom the Hidden Path to Social Justice?," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 34(Winter 20), pages 55-74.
    7. Jorge Chica‐Olmo & Marina Checa‐Olivas, 2021. "Spatial impact of factors influencing the achievement of the Europa2020 employment targets," Papers in Regional Science, Wiley Blackwell, vol. 100(3), pages 633-649, June.
    8. Manuel Carlos Nogueira & Mara Madaleno, 2021. "Are International Indices Good Predictors of Economic Growth? Panel Data and Cluster Analysis for European Union Countries," Sustainability, MDPI, vol. 13(11), pages 1-24, May.
    9. Jackson, Jeremy & Beaulier, Scott, 2023. "Economic freedom and philanthropy," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 148-183.
    10. Li, Yufan & Teng, Weichen & Tsai, Limin & Lin, Tom M.Y., 2022. "Does English proficiency support the economic development of non-English-speaking countries? The case of Asia," International Journal of Educational Development, Elsevier, vol. 92(C).
    11. Ghasemi, Abdolrasoul & Boroumand, Yasaman & Shirazi, Masoud, 2020. "How do governments perform in facing COVID-19?," MPRA Paper 99791, University Library of Munich, Germany, revised 20 Apr 2020.
    12. Ewa Mazur-Wierzbicka, 2022. "Measurement of Progress in the Environmental Area: Poland against the Countries of the European Union," IJERPH, MDPI, vol. 20(1), pages 1-27, December.
    13. Dana Jašková, 2021. "Efficiency of management processes in a private hospital," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(1), pages 436-446, September.
    14. Hassan Najadat & Ahmad Alaiad & Sanaa Abu Alasal & Ghadeer Anwar Mrayyan & Izzat Alsmadi, 2020. "Integration of Data Envelopment Analysis and Clustering Methods," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 19(01), pages 1-19, March.
    15. Hadsell, Lester & Jones, Adam T, 2020. "The company you keep: Satisfaction with life, economic freedom, and preference-policy mismatch," Journal of Comparative Economics, Elsevier, vol. 48(3), pages 642-657.
    16. Izabela Młynarzewska-Borowiec, 2021. "Does Implementation of the Smart Growth Priority Affect Per Capita Income of EU countries?—Empirical Analysis for the Period 2000–2017," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1345-1366, September.
    17. Ane-Mari ANDRONICEANU & Jani KINNUNEN & Irina GEORGESCU, 2021. "Entrepreneurial Motivations To Start New Businesses: A Panel Data Analysis," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(1), pages 479-491, November.
    18. Zachary D. Blizard, 2023. "The Interaction Effect of Economic Freedom and Economic Development on Corruption in US States," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 38(Summer 20), pages 17-37.
    19. Małgorzata Stec & Mariola Grzebyk, 2022. "Statistical Analysis of the Level of Development of Renewable Energy Sources in the Countries of the European Union," Energies, MDPI, vol. 15(21), pages 1-18, November.
    20. Agata Pierscieniak & Mariola Grzebyk, 2020. "Searching Key Macro-Factors for Cooperation in Cross-Border Tourism: Institutional Matrix vs. PEST Concept," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 249-259.

    More about this item

    Keywords

    Cluster analysis; economic development; EU member states; international indices; multidimensional classification;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:reoecp:v:20:y:2020:i:3:p:379-401:n:6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.