Abstract

ESPINOZA ROMANO, Vivian  and  ROMAN JUCHANI, Amira Jimena. Identification of country profiles based on economic variables, using principal component analysis (PCA). RevActaNova. [online]. 2025, vol.12, n.1, pp.3-18.  Epub Mar 31, 2025. ISSN 1683-0789.  https://doi.org/10.35319/acta-nova.202544.

In a globalized and highly competitive world, understanding the factors that drive countries' economic growth is essential for identifying development patterns and opportunities for innovation. In this context, Principal Component Analysis (PCA) is presented as an effective tool for examining how different economic variables influence the evolution of economies worldwide.

This study analyzes 170 countries around the world and focuses on eight key variables, including the contribution of agriculture, services, the distribution of employment in these sectors, and life expectancy. The objective is to identify and characterize countries based on these variables. Through PCA, two principal components were identified that explain countries' economic modernization. The first reflects the transition process from an agricultural economy to one based on the services sector, while the second shows economic diversification as an essential factor in sustained development. In this regard, the analysis shows that 82.227% of the model's variance is explained by economic growth, coupled with investment in service sectors. These are key factors for driving sustainable growth, something notable in advanced economies such as Western Europe, East Asia, and North America. While countries in South Asia and Southeast Asia still struggle to diversify their economies and break away from dependence on the primary sector to improve their progress, countries in Latin America and Africa face similar challenges. In the Middle East, countries such as Qatar and the United Arab Emirates have demonstrated significant progress through investment in service sectors.

While significant differences are observed between advanced economies, with a strong service sector and industrialization, there are also differences among those that still depend on agriculture. Bolivia is in an intermediate position, with an economy in transition that faces challenges in diversification and industrialization. The results provide insight into how different economic factors influence countries' growth and quality of life, providing key information for economic analysis and policymaking. The methodological approach employed was a quantitative, descriptive, non-experimental study, employing multivariate techniques such as Principal Component Analysis (PCA). SPSS and Excel statistical software were used for data processing.

Keywords : Analysis of principal components; economic growth; productivity; economic development; diversification.

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