An empirical approach of the distinctive aspects for socioeconomic development

Abstract

This paper aims to present an integrative approach for examining key aspects, and their associations, of economic development. After a cross-country cluster analysis of profiles related to select indicators, discriminant analysis of the clusters identified variables that most differentiate them. This assessment acknowledges that their level of capital endowment, and the ability to exploit it, is crucial to economic performance. Intangible aspects are the elements necessary for creation and maintenance of distinct economic development. Economies with lower skills and knowledge activities lose governance and cohesiveness, explaining unemployment and inequalities and influencing the consumer-confidence index. Economies with higher confidence use new communication technologies. E-government and knowledge media play an important role since collective learning occurs through active social communication. As the learning environment matures, its elements gain new knowledge and entrepreneurship, valuing cohesiveness and governance. This study contributes an original integrative approach to indicators for cross-evaluation, applied to economies/regions or firms. The complements between cluster and discriminant analyses consolidate and sustain the approach, helping economists, policymakers, and researchers understand distinctive aspects of economic development and their associations for coping with future economic stress.