khazzartech الاقتصاد الصناعي
Volume 15, Numéro 2, Pages 1-26
2025-12-20

Digital Momentum And Urban Transformation Measuring Smart City Readiness In Algeria Through Principal Component Analysis.



Authors : Bentouir Naima . Mebarki Sami .

Abstract

This study develops a composite Smart City Readiness Index to evaluate Algeria’s urban digital transformation from 2017 to 2029. Using Principal Component Analysis, we synthesize a multidimensional dataset comprising technological, infrastructural, demographic, and economic indicators into a single interpretable score. The PCA approach enables dimensionality reduction while preserving the latent structure of the data, effectively handling multicollinearity and revealing dominant readiness patterns. The resulting index is scaled to a 0-100 range to facilitate temporal comparison and policy relevance. Statistical diagnostics, including eigenvalue decomposition, confirm the robustness of the model. The readiness scores show a consistent upward trajectory, with digital access and service penetration emerging as primary drivers. Economic indicators such as GDP and population density contribute to secondary dimensions, highlighting the enabling role of macroeconomic conditions. The study offers a replicable framework for smart city assessment in developing contexts and provides actionable insights for strategic planning and digital policy formulation

Keywords

Smart city readiness ; Urban development ; Economic transformation ; Algeria

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