THE INVESTIGATION OF THE RELATIONSHIP BETWEEN SOCIAL AND ECONOMIC INDICATORS BY CANONICAL CORRELATION AND PARTIAL CANONICAL CORRELATION ANALYSIS FOR EU AND OTHER DEVELOPED COUNTRIES INCLUDING TURKEY


ÜNAL C., Tatlidil H.

JOURNAL OF MEHMET AKIF ERSOY UNIVERSITY ECONOMICS AND ADMINISTRATIVE SCIENCES FACULTY, vol.5, no.3, pp.597-614, 2018 (ESCI) identifier

Abstract

Canonical correlation analysis, which is one of the multivariate statistical methods, is an alternative to multivariate regression analysis and it reveals the relationship between the variable sets. In this study, Canonical Correlation Analysis and Partial Canonical Correlation Analysis are studied practically. In the application part, various data of 31 countries including EU Countries in 2015 are used. Considering that there is a multidimensional relationship between human investments and economic indicators of the countries, the Canonical Correlation Analysis (CCA) is applied in order to reveal these relationships. In addition to variable sets of human investments and economic indicators, a new variable set which is expressed to investments for development is added to application for Partial Canonical Correlation Analysis (PCCA). Afterwards, the study is terminated with detailed interpretations.