Using Multidimensional Scaling for Assessment Economic Development of Regions

Abstract

Addressing socio-economic development issues are strategic and most important for any country. Multidimensional statistical analysis methods, including comprehensive index assessment, have been successfully used to address this challenge, but they don't cover all aspects of development, leaving some gap in the development of multidimensional metrics. The purpose of the study is to construct a latent metric space based on the use of multidimensional scaling. Based on statistics showing the economic development of Ukrainian regions, two-dimensional space of latent scales was constructed and Ukrainian's regions were positioned in this space. The results were interpreted meaningfully. This use of multidimensional statistical analysis confirms its usefulness for measuring the economic development of regions and allows their comprehensive assessment and comparison.

Keywords

• economic development
• multidimensional scaling
• region
• two-dimensional space
• latent scales