Similarities of the V4 Countries Characterised by the Business Environment Quality and Megatrends

Abstract

Every economy possesses its unique characteristics and forces forming and affecting that particular business environment. Despite the differences in conditions, quality and interventions in the business environment, there are similarities within the specified deviations. Based on these similarities, it is possible to determine the common lines of countries within which their business environments and trends develop over time. The paper focuses on finding that lines through the division of the countries of the V4 into clusters according to indicators of the business environment quality and selected megatrends over time. Using cluster analysis performed in SPSS Statistics 26 for the chosen period from 2011 to 2022, countries are divided into clusters based on indicators of economic environment and megatrends. For the purpose of this study the index of economic freedom, change in economic power, lack of resources, technological breakthrough, social changes, and rapid urbanization. Based on the results of the cluster analysis, the degree of similarity of the economies represented by the quality of the business environment and selected global trends is identified during the monitored period, and vice versa the degree of differences within selected subjects is identified.