will be brought together in this indicator following specifically prescribed weights.
Such an indicator is designed to define regions noted for good procpects or no
procpects of industrial structure.
4. National economy income. This is an integrated factor generalizing financial
outcome in economy. Being adduced to the number of population actively gained in
national economy, the factor can specify the profitability of economy by regions on
comparative basis. Correctness of its application will be even enhanced once the
income is freed from the price factor to make use of inregrated indices, or implicit
price deflators.
3.2. Role of factor analysis in aggregating initial indicators
In order to establish general patterns pointing to the essence of a phenomenon
under study, a group of correlated indices is replaced with the calculated (synthetic)
value, or what is known to be a factor.
Arrangement of factors and departing from a great number of initial variables to
form a relatively small set of major factors appropriately simplifies the problem of
choosing indices which provide for the diagnostics of socio-economic
development of a region.
As a result, the initial list has been reduced from 100 to 20 indices to be
provisionally broken down into five groups:
Group 1 - «Living standard», which is understood to mean the ratio of income to
the subsistence level, general unemployment level, provision of people with
accomodation, cars, meat and meat products, as well as vegetables per capita.
Group 2 - «Industrial and financial development of a region» - indicates an
averaged per capita volume of industrial production, unit investments, index of
physical volume of production, per-capita taxation in a region.
Group 3 - «Agricultural potential of a region» - comprisesfour major indices of
agricultural per-capita production, such as grains, potatoes, meat and milk.
Group 4 - «Level of social well-being» - contains indices indicating the
development of regional social sphere. The most prominent of them (in terms of
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