Comparison of factor analysis and clustering analysis: Theory and practice

In this study, it is aimed to compare factor analysis and cluster analysis, which are multivariate statistical methods. In this context, factor analysis and clustering analysis were applied to the data by considering the effect of the pandemic period on macroeconomic variables, and the results were compared. In the study, 15 variables selected from economic units were used. As a result of factor analysis, three factors were determined. The first of the factors is "currency, reserves and loans", the second is "Foreign trade and tourism", and the third is "immovables and economic growth". As a result of the cluster analysis, three clusters were determined. In factor analysis and cluster analysis, the number of variables used and the number of clusters determined as a result of the analysis were determined to be equal to each other. The difference between the results of factor analysis and clustering analysis is the distribution of variables according to clusters. As a result of the study, it was determined that the measure simple mented during the pandemic period were effective on economic indicators. Therefore, it has been concluded that the economic dynamics before and after the pandemic are different.