This study aimed at identifying the best indicators representing economic factors
using Factor Analysis, as well as developing a mathematical model linking principal
components which represent both the economic factors and consumer spending in Syri
a
using Multi-linear regression analysis. A descriptive analytical approach is used in this
study.
The study results from Factor Analysis show that there are three principal
components which best represent the economic factors. The first component includes: the
number of workforce working for free, the number of paid workforce, consumer price
index, the average annual GDP per capita. The second component includes: interest rate,
self-employed workforce. The third component includes the number of employers.
A mathematical model is developed to link the above three components of the
economic factors and the total monthly household spending average in Syria during (
2000-2010).