Using factor analysis to determine representative indicators in the financial sphere of economic security
DOI:
https://doi.org/10.20397/2177-6652/2022.v22i1.2342Palabras clave:
economic security, representative indicators of economic security, factor analysisResumen
The purpose of the study is to adapt the factor analysis method for the determination of representative indicators. Within the article, the algorithm for applying factor analysis according to the goals of determining representative indicators is revealed. The authors use the method of factor analysis and the method of principal components, through which a sample of seven economic security indicators for the period from 2007 to 2020 is analyzed. The analysis is carried out using the IBM SPSS Statistics data analysis software platform. Based on the results of the analysis, a conclusion is made about the applicability of the factor model, the resulting factors are assessed, and an approach to the choice of a representative indicator based on factor loading is proposed. The main disadvantage of the proposed approach is subjectivity which consists in the choice of indicators for assessing economic security that form a particular area of economic security, determining the sufficiency of the number of factors, which accounts for the percentage of explained variance, and determining how many indicators are discarded based on the distribution of factor loading. Moreover, the analysis reveals the problem of mutual comparability of indicators for different periods, which prevents one from significantly increasing the sample. As a result of the study, the authors propose an approach to determining representative indicators based on the method of factor analysis. It is suggested to use the value of factor loading as the criterion for choosing a certain representative indicator. The authors also reveal how to consider the identified shortcomings of the proposed approachCitas
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