| Abstract: | Economic classifications of countries are of continuing utility for comparative and analytic purposes. However, traditional methods of arriving at classifications are often ad hoc, subjective, and imprecise, not permitting the assignments to be used for closer analysis. Discriminant analysis is used in this paper to isolate a time‐specific set of economic factors delimiting economic state categories that correspond to core‐periphery states. The core‐periphery framework is shown to be a special case of a hierarchical market scheme. The purposes of this work are (1) to create a theoretically grounded, empirically derived classification over several time periods to permit dynamic comparisons to be made and provide an explanation of change in the global economy, and (2) to provide feedback information from the classification to supply the necessary rigor and quantitative insight to the world‐systems theoretical framework. Results of the analysis suggest that different economic variables provide varying levels of explanation at different times. In particular, variables representing factor endowment provide a greater measure of explanation early in the sequence (for example, 1960) while trade and investment measures are of greater importance in the latter part of the study sequence (for example, 1990). OPEC countries significantly bifurcate the world‐economy classification in 1970 and exhibit separate class characteristics. Even within the short time period, a number of countries are shown to transit among the classes. The model is also able to capture the dependence structure implicit in the world‐systems framework. |
