PREDICTION OF ECONOMIC FREEDOM CATEGORIES OF OECD COUNTRIES USING THE K-NEAREST NEIGHBOR ALGORITHM
K-EN YAKIN KOMŞU ALGORİTMASI İLE OECD ÜLKELERİNİN EKONOMİK ÖZGÜRLÜK KATEGORİLERİNİN TAHMİN EDİLMESİ

Author : Ergin DEVECİ -Çiğdem ÖZARI
Number of pages : 577-590

Abstract

The aim of this study is to predict 2017 economic freedom index categories of 36 OECD countries including Turkey by the help of k-nearest neighbor algorithm using the data for 2016. For this purpose, four basic macro-economic indicators (import, export, unemployment and inflation) and economic freedom scores were used. In other words, with the help of analysis implemented with these variables, the economic freedom categories of 36 OECD countries were predicted for the year 2017. In this study, which uses one of the classification methods, the k-NN algorithm, evaluations were made on different k values. The most important findings of this study are; for each k value, the algorithm predicted correctly for seven countries among 36 OECD countries and the algorithm predict incorrectly for two countries.

Keywords

OECD, Import, Export, Unemployment, Inflation, Economic Freedom, K-Nearest Neighbor

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