Developmental Factors and Economic Clusters: Analyzing the Pathways to GDP Growth Across Global Economies

Abstract

This study investigates the developmental characteristics of global economies by analyzing the similarities and differences among countries based on key developmental factors. Utilizing secondary data from the Global Competitiveness Report 2020, cluster analysis was performed to group 37 countries into four distinct clusters. These clusters represent emerging, developed, transitional, and economic powerhouse economies, each distinguished by distinct developmental priorities and challenges. Multiple regression and moderation analyses were employed to explore the relationship between GDP and developmental factors such as governance, infrastructure, education, financial incentives, and public-private collaboration. The results reveal that financial incentives and public-private collaboration significantly influence GDP, underscoring their critical role in economic growth. However, moderation analysis suggests that the effect of developmental factors on GDP is not significantly influenced by economic clusters. These insights offer valuable guidance for policymakers and stakeholders in designing targeted interventions to promote sustainable and inclusive growth globally.