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Economic Freedom Index Calculation Using FCM

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  • Necati Alp Erilli

Abstract

The Index of Economic Freedom is an annual index and ranking created by The Heritage Foundation and The Wall Street Journal in 1995 to measure the degree of economic freedom in the world's nations. There are many kinds of Economic Freedom Indices depending on variables which many institute or company determine for their research. The aim is to predict countries or regions according to economic parameters. In this study, fuzzy clustering algorithm is proposed for economic freedom ındex calculation. By using degree of memberships founded by FCM, Economic Freedom index will be calculated for regions. Results compared with indices calculated by The Heritage Foundation for the year 2013, 2014, 2015 and 2016. It is showed that FCM is an alternative method for index calculating systems.

Suggested Citation

  • Necati Alp Erilli, 2018. "Economic Freedom Index Calculation Using FCM," Alphanumeric Journal, Bahadir Fatih Yildirim, vol. 6(1), pages 93-116, June.
    • Handle: RePEc:anm:alpnmr:v:6:y:2018:i:1:p:93-116
    DOI: http://dx.doi.org/10.17093/alphanumeric.337322
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    References listed on IDEAS

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    Cited by:

    1. José Manuel Cabello & Francisco Ruiz & Blanca Pérez-Gladish, 2021. "An Alternative Aggregation Process for Composite Indexes: An Application to the Heritage Foundation Economic Freedom Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 443-467, January.

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    More about this item

    Keywords

    Classification; Economic Freedom; FCM; Freedom Index; Fuzzy Clustering Analysis;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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