Cluster Analysis of Countries Inequality Due to IT Development Through Macros Application

Abstract

Industry 4.0 is likely to be a way to reach both economic efficiency and social equity. Nevertheless, nobody can predict the social impact of Industry 4.0 on society, which transforms into Society 4.0. The purpose of this paper is to prepare cluster analysis of countries inequality due to IT development using software package and macros application. We researched impact of gross capital formation, research and development expenditure to create innovations, intellectual property and high-technology exports on inequality of countries using principal component analysis based on open data 2012–2015. Cluster analysis allows countries to be divided into homogeneous groups that describe the impact of IT development on these countries in the absence of training samples. An isotonic or isomorphic algorithm is used for cluster analysis. PCA method is used as an isotonic algorithm. The isomorphic algorithm includes in groups countries which are close in structure. We presented advantages of isomorphic algorithm versus isotonic one using Macros Application which give us necessary links between countries to develop dendrite diagram for clusters of countries under impact of IT factors. Thus we have received 7 clusters describing the diverse impact of IT factors on nonuniform income distribution across 45 countries. First group of clusters shows that IT factors motivates to decrease economic inequality. Second group of clusters demonstrate that IT factors lead to inequality. Third group of clusters presents that other factors (not IT factors) generate decreasing of inequality. Fourth group of clusters prove that other factors (not IT factors) generates expanding of inequality.