Assessment of Implication of Competitiveness on Human Development of Countries via Data Envelopment Analysis and Cluster Analysis Füsun Ülengin a , Özgür Kabak b1 , Şule Önsel a , Emel Aktaş b a Dogus University, Faculty of Engineering, Department of Industrial Engineering, Acibadem, Kadikoy, 34722 Istanbul, Turkey b Istanbul Technical University, Faculty of Management, Department of Industrial Engineering, Macka, 34357 Istanbul, Turkey Abstract Globalization speeds up competition among nations in various sectors. In terms of multinational and transnational phenomena, countries are seen as inescapable from competition, thus the linking of the term global with “competitiveness”. The research described here explores the relationship between the competitiveness of a country and its implications for human development. For this purpose, using data envelopment analysis (DEA) and cluster analysis 44 selected countries were evaluated. An output-oriented super- efficiency model where global competitiveness indicators are taken as input variables with human development indicators as output variables is utilized. This process is repeated for years between 2005-2007. Then cluster analysis depending on the competitiveness and human development indicators is conducted by using self organizing maps to specify the development levels of the countries. Finally the relationship between the super efficiency scores and the development levels is analyzed. Keywords Competitiveness, human development, country evaluation, data envelopment analysis, Cluster analysis, self organizing maps 1. Introduction The near future is expected to bring important changes to the shape of the world economy and to the landscape of major industries. In seeking to explain patterns of international competition, several researchers, such as Kogut (1988), Porter (1990), and Dunning (1990, 1993), have emphasized the importance of the characteristics of the home country in 1 Corresponding author. Tel. +902122931300/2042, Fax: +902122407260, Email Address: kabak@itu.edu.tr (Ö. Kabak).