Performance of Developing Countries: An Explorative Investigation of Developing Countries Using Clustering Analysis

Emil Dalgaard Pedersen

Studenteropgave: Kandidatafhandlinger


In recent times, various developing countries have ascended to the status of emerging economies, showing significant signs of growth. At the same time, economists prosper enormous economic capabilities for developing countries in the future. To that end, this thesis aims to investigate the capabilities of cluster analysis to understand potential similarities between governmental incentives in developing countries across the globe. The research is constructed around 68 developing countries while introducing 52 indicators that represent various aspects of an economy. To get an overview of the relationship of the indicators, correlation methods are applied. Additionally, factor analysis reduces the dataset into categorical groupings, whereas hierarchical clustering is utilized to cluster countries into sub-clusters containing similar characteristics. Selected clusters are then further analyzed to detect any patterns in the governmental incentives for each country. The results of the correlation-based analysis revealed that indicators from the same origin have highly correlated relationships. Moreover, the computed factors from the factor analysis indicate a solid resemblance to the clusters' categories retained in the hierarchical clustering analysis. Lastly, the examination of detecting similarities within the countries’ governmental incentives revealed numerous commonalities. Zimbabwe and Kenya have common adjustments in terms of adopting new curriculum reforms, whereas Nepal and Kenya share similarities in their allocation of government spending towards the educational systems. Likewise, Guyana, the Kyrgyz Republic, and Tajikistan are all extremely dependent on their economic relations with advanced economies to maintain their high levels of trade and foreign investments. Finally, the outcome of investigating Bangladesh, Cambodia, India, Morocco, and Pakistan revealed an increased allocation of human capital in the garment and textile industries, which has led to further improvement of worker conditions in Bangladesh and Cambodia.

UddannelserCand.merc.ib International Business, (Kandidatuddannelse) Afsluttende afhandling
Antal sider78
VejledereOlaf Sigurjonsson