Classification of Municipal and Urban Districts of the Mari El Republic by Investment Activities

Abstract

The level of the territory economic development characterizes the success of its functioning in modern conditions. The potential for further economic growth is determined by the state of the region investment sphere, the scale of development of which gives an idea of the available opportunities for further increasing the well-being of the Republic. The classification of the Mari El Republic municipalities allows you to determine investment and progressive territories and outline the directions for the further application of production capacities in order to build up the real sector of the economy. The purpose of the study is to classify municipal districts and urban districts of the Mari El Republic to form homogeneous classes for investment activities. Achieving the purpose involves solving the problems of selecting defining investment and production indicators, obtaining sustainable practice-oriented clusters and their economic interpretation. Statistical method of cluster analysis is used as multivariate classification algorithm. The construction of a dendrogram based on an agglomerative hierarchical approach allows us to visually combine the studied objects into groups similar in values of the studied indicators. The subsequent application of the divisional algorithm of the k-means method with the division of the original set of objects into a given number of clusters equal to the number of selected groups on the dendrogram allows you to compare the filling of classes and assess the accuracy and correctness of the selected classification groups. As a result of the classification of the Mari El Republic municipal districts and urban districts, they were divided into 4 groups, characterizing their investment potential and opportunities for further increase in economic growth.