JEFMS Journal

ABSTRACT:

The paper motion to differentiate the terms of economic growth and economic development, the first being a quantitative component of the second one. Economic development also has a qualitative element on the quality of life or living conditions. We propose a case study to compare the level of economic growth measured by GDP with that of economic development, measured by several indicators, that would cover aspects of quality of life, beside having GDP to cover the quantitative aspect. The database is composed from World Bank for countries on 3 continents, the purpose being to cluster the countries according to their level of development, respectively economic growth. For the given data set, the results prove to be identical for both studies, i.e. grouping by the levels of economic development could have been done only based on GDP.

KEYWORDS:

k-means, hierarchical clustering, economic development, economic growth, data mining.

REFERENCES:

1) L. Scutaru, Economic development versus sustainable development, Ecoforum, 2(1), 2013, 35-40.

2)F. T. Boldeanu, L Constantinescu, The main determinants affecting economic growth, Bulletin of the Transilvania University of Braşov, 8(57), 2015.

3)J. Stiglitz, J. Fitoussi and M. Durand, Beyond GDP: Measuring What Counts for Economic and Social Performance (OECD Publishing, Paris, 2018).

4)L. Nielsen, How to Classify Countries Based on Their Level of Development, Social Indicators Research, 114 (3), 2013, 1087-1107.

5)M. K. Prasad and A. Castro, Is GDP an adequate measure of development?, 2018, https://www.theigc.org/blog/is-gdp-an-adequate-measure-of-development/

6)L. Nielsen, Classifications of Countries Based on Their Level of Development: how it is Done and How it Could be Done. IMF Working Paper, 11(31), 2011.

7)Ș. A. Ionescu, Clusterizarea ierarhică cu aplicaţii în analiza financiară. Revista Română de Statistică, 2015 (8), 2015.