—This paper can help decision makers to identify the regions with the largest need for stimulating their development. It offers ideas how to compare municipalities and how to search for common factors that influence development. Data from Latvia are used as an example of this method. It shows how cluster analysis can be applied for comparing socio-economic development of different municipalities and confirms the hypothesis that one of the characteristics common for municipalities with similar measures describing development is their geographical location.
—Cluster analysis, municipalities, regional development.
I. Brauksa is with University of Latvia, Aspazijas blvd. 5, Riga, LV 1050, Latvia (e-mail: firstname.lastname@example.org).
Cite:Ieva Brauksa, "Use of Cluster Analysis in Exploring Economic Indicator Differences among Regions: The Case of Latvia," Journal of Economics, Business and Management vol. 1, no. 1, pp. 42-45, 2013.