Page 83 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.82, # 2, 2025, pp. 79-95

METHODS
Factor analysis
Factors influencing farmers in West Bengal were identified by conducting factor
analysis. Similar to multiple analysis, variables are represented as linear combinations
of underlying factors in this factor analysis. The percentage of variance each variable
shares is called commonality. Several common factors contribute to the covariance
between variables, while a unique factor is responsible for the covariance between
each variable. There is no overt observation of these factors. A factor model based on
standardized variables would look as follows (Atulkar, 2022; M. et al., 2025).
Xi = Ai1F1 + Ai2F2 + Ai3F3 +.........+Aim Fm + Vi Ui ………………. (1)
Where
th
Xi = i standardized variable
Aij = standardized multiple regression coefficient of variable i on common factor j
F= common factor
Vi= standardized regression coefficient of variable on unique factor i
Ui= the unique factor for variable i
m= number of common factors
Factors that are unique are not related to one another or to factors that are common. If
there are common factors among the observed variables, then a linear combination of
these variables can help describe them.
Fi = Wi1X1 + Wi2X2 + Wi3X3 + ............. + Wik Xk…………………. (2)
Where
th
Fi = estimate of i factor
Wi = weight or factor score coefficient
k = number of variables

RESULTS AND DISCUSSION
Socioeconomic characteristics of solar farmers in West Bengal
Factors responsible for the adoption of solar water pumping systems in West Bengal were
identified using factor analysis. The data is derived from 150 farmers who adopted solar
water pumping systems. Table 1 shows a summary of the socio-economic profile of
farmers.

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