CROSS-SECTIONAL ANALYSIS OF ECONOMIC, SOCIAL AND TECHNOLOGICAL FACTORS OF COUNTRIES DEVELOPMENT USING THE I-DISTANCE METHOD
Abstract: Quantitative ranking of countries according to the level of development is conducted using the I-distance method through four models with different sets of selected variables. The analysis covers economic dimensions (GDP per capita in PPS, real GDP growth rate, inflation, public debt, current account balance), labour market and investment indicators (unemployment rate, gross fixed capital formation, foreign direct investment flows), as well as socio-technological dimensions (HDI index and internet usage). The research includes 27 European Union countries in 2024, with the addition of Japan, Russia, the United States, Canada, the United Kingdom, and Bosnia and Herzegovina. The results indicate a high degree of ranking stability, particularly for countries at the top and bottom of the list, while the middle segment shows greater sensitivity to changes in the defined variables. Countries with the highest rankings are characterized by stable macroeconomic performance, high human capital, and developed digital infrastructure, whereas lower-ranked countries indicate structural weaknesses in economic and socio-technological dimensions. The constructed ranking list enables differentiation of countries by the level of development and provides a basis for analysing convergence and structural heterogeneity. The paper contributes to contemporary economic research by applying a transparent, objective, and precise quantitative methodology for country comparison and provides relevant guidelines for economic analysis and development policy.
Keywords: I-distance, country ranking, economic indicators, socio-technological factors, level of development