Divide China's Economic Regions in 2019 Based on Cluster Analysis and Principal Component Analysis

Abstract

In recent years, China's economic development has been very rapid. While China is developing rapidly, each province has contributed its share, but in different regions, economic development is different. Different regions must have advantages in different aspects, so in order to divide China's 31 provinces into different categories. In order to get the ranking of the provinces that have the greatest impact on China's economy. We first adopt the method of principal component analysis to reduce the dimensions of 11 variables that affect the economic factors of each province, and obtain two principal components to reflect all sample information. Then, perform dimensionality reduction and cluster analysis on the obtained data, and use the sum of squared variance (WARD) method to perform cluster analysis on the two principal components. Finally, the social development of 31 provinces in my country is divided into 4 categories. It is concluded that Beijing and Shanghai are first-level developed provinces, Jiangsu and Guangdong are second-level developed provinces, Hebei, Sichuan, Hunan, Shandong, Henan, Shanxi, and Hubei are third-level developed provinces, Tianjin, Hainan, Tibet, Qinghai, Ningxia, Inner Mongolia, Jilin, Gansu, Xinjiang, Fujian, Chongqing, Liaoning, Anhui, Shaanxi, Jiangxi, Guizhou, Yunnan, Heilongjiang, and Guangxi are four-tier developed provinces. I hope our results can help relevant departments.