Analysis of Eurasian Countries in Terms of Economic Freedom with Cluster Analysis

Abstract

Governments in economically free societies; aim to increase the level of sustainable growth and prosperity of the country while allowing labor, capital, and products to move freely. To determine the economic freedom of the countries, it publishes indices by various independent institutions, and thus, their position in comparison to other countries is determined. Especially ın order to determine the group structure among countries that are close to each other in terms of regions; In addition to revealing the status of the region in terms of economic freedom, it is beneficial in terms of acting with similar countries for plans and determining policies. In the index called the Economic Freedom Index published annually by the Heritage Foundation, a ranking including the countries that are members of the United Nations is made. This index value is measured through variables based on 12 quantitative and qualitative factors divided into four broad categories of economic freedom. In this study in which 2021 data was used, cluster analysis, one of the multivariate statistical analysis techniques, was preferred to group countries. Findings from the analysis showed that Eurasian countries were divided into 4 different clusters according to the economic freedom index. Among the countries, the most striking country was North Korea. In the formation of this situation. It can be thought that it is due to the state's adoption of an excessively interventionist policy in the economic policies of the country.