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Development of Classification Models of EU Countries by Construction Sector Development
Oriekhova T. Y., Chagovets L. O., Chahovets V. V.

Oriekhova, Tetiana Ye., Chagovets, Liubov O., and Chahovets, Vita V. (2025) “Development of Classification Models of EU Countries by Construction Sector Development.” Business Inform 12:189–199.
https://doi.org/10.32983/2222-4459-2025-12-189-199

Section: Economic and Mathematical Modeling

Article is written in Ukrainian
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UDC 004.94

Abstract:
The article evaluates the development status of the construction sector in European Union countries for 2022–2024 using cluster analysis methods to identify countries with similar characteristics, allowing the determination of the current state of development and highlighting the main differences between clusters. The models were implemented in the RStudio software environment. Based on the constructed model, EU countries were grouped into three clusters according to the development level of the construction sector. The first cluster, representing a high level of construction sector development, included Spain, Italy, Germany, and France. In these countries, effective management of the sector is primarily ensured by non-governmental organizations and professional associations of builders. A notable feature is also the high level of adoption of innovations and digital technologies, which contributes to increased productivity, resource optimization, and the development of green construction, supporting the sector’s competitiveness. A sufficient level of development of the construction sector (the second cluster) encompasses the largest number of EU countries. This cluster exhibits a high level of investment but low productivity indicators. The sector is developing but requires optimization of productivity and resource efficiency. It is recommended to implement digital technologies and enhance management efficiency to ensure sustainable development. The average development level of the construction sector (the third cluster) is characterized by relatively low indicators and limited investment activity, despite a high level of production. For such countries, it is important to attract investment, enhance resource use efficiency, stimulate employment, improve regulatory and institutional mechanisms, and promote sector modernization to avoid the risk of stagnation. Therefore, to ensure sustainable development of the construction sector in EU countries, the priority areas are the implementation of digital technologies, investment promotion, and labor productivity improvement.

Keywords: modeling, classification, sustainable development, EU countries, construction sector.

Fig.: 11. Tabl.: 2. Bibl.: 17.

Oriekhova Tetiana Ye. – Masters Student, Simon Kuznets Kharkiv National University of Economics (9a Nauky Ave., Kharkiv, 61166, Ukraine)
Email: [email protected]
Chagovets Liubov O. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Economic Cybernetics and Systems Analysis, Simon Kuznets Kharkiv National University of Economics (9a Nauky Ave., Kharkiv, 61166, Ukraine)
Email: [email protected]
Chahovets Vita V. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Information Technology, Cybernetics and Information Security, State Biotechnological University (44 Alchevskykh Str., Kharkiv, 61002, Ukraine)
Email: [email protected]

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