The Tilburg Institute of Economics - Institute of the Economic Faculty
of the Tilburg University - proposes itself to publish results of
economic research taking part in the F acul ty . To facilitate the
choice of the potential reader, every publication will be marked by the
department, where the publication took its origin. As Mr. Schilderinck's
'Factor Analysis' applied to developed and developing countries, is a
result of research in the Econometric Department, it is mark- ed
Econometrics. Every publication will be published under the supervision
of the head of the department. For this reason this preface is written
by the head of the Econometric Department. Mr. Schilderinck's study
forms an introduction to a larger project of research, which proposes
itself to develop methods of analysis, which try to eliminate the
difficulties of multi-collinearity and the arbitrariness of the
introduction of lags in regression analysis. This study applies the
method of factor analysis to statistical material collected by the
Institute of Development Problems of our University. Prof. Dr. J. J. J.
Dalmulder Head of Department of Econometrics v Contents PREFACE. . . . .
. . . . . . . . . . . . . . . . . . . . . . .. . . . v . . . . .
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . .. . . IX . .
. 1. AIM OF FACTOR ANALYSIS . . . . . . . . . . . . . . . . . . . . . 3
2. THE METHOD OF FACTOR ANALYSIS. 3 2.1 Normalisation of the variables .
. . 4 2.2 Correlation and variance in factor analysis . 5 2.3 The model
of the factor analysis 2.4 Solution of the model ..... . 9 2.5
Interpretation of the final aspects . 17 3. APPLICATION OF FACTOR
ANALYSIS TO DATA FROM DEVELOPING COUNTRIES . . . . . . . . . . . . . . .
.. . . 22 . .
