Long-run Homogeneity in Asian Countries Pertaining to Economic Development Indicators: A Study Based on Human Development Index
Mohammad Saifuddin, Lecturer in Statistics, Department of Mathematics and Statistics, Bangladesh University of Business and Technology (BUBT)
MD. Mahmudul Hassan, PH.D. Associate Professor, Department of Economics, Bangladesh University of Business and Technology (BUBT)
Abstract: For sustainable development of any country, long-term economic development is essential. Developed countries over the world exhibits gradual economic development from decade to decade. This paper aims to group thirty-seven Asian countries based on long-term homogeneity of HDI (Human Development Index) trend from 1990 to 2018. The source of data is United Nations Development Program (UNDP). Out of forty-seven United Nations’ (UN) listed Asian countries, thirty-seven Asian countries were selected due to missing data of the remaining ten countries. Hierarchical cluster analysis was conducted to visualize existing homogeneous groups and K-means cluster analysis was used to determine optimum number of clusters. The result of cluster analysis determines three distinguish clusters of Asian countries. Three clusters labeled as high HDI cluster (11 countries), medium HDI cluster (17 countries) and low HDI cluster (9 countries). Countries within clusters are found with similar economic development status and also geographically adjacent to each other. However, one-way ANOVA also indicates that, the average long-run HDI of three clusters were significantly different.