I have a cross table of z-transformed data. The columns and rows consist of country codes and the data in the table is an index number indicating the mutual dependency on trade between the two countries, which has been transformed to z-scores for comparability reasons.
I now want to cluster the cross table into communities of countries that are significantly more dependent on trade within their cluster than outside of their cluster.
How can I achieve that clustering (in R)?
I have used kmeans algorithm with fairly reasonable results, but I'm not sure kmeans works on z-scores. If not, is it possible to transform z-scores into distances of any kind?
Glad for any help!
EDIT: The upper left corner of my data looks like this (differences are small, but they are there and sometimes bigger than in this example):
AFG AGO ALB AND ARE ARG ARM ATG
AFG NA NA NA NA NA NA NA NA
AGO NA NA NA NA NA NA NA NA
ALB -0.07627342 -0.07627342 NA NA -0.07626487 NA -0.07627322 NA
AND NA NA NA NA NA NA NA NA
ARE -0.07608694 NA NA NA NA NA NA NA
ARG -0.07627337 -0.07595271 -0.07626095 NA -0.07564470 NA -0.07626129 NA
ARM -0.07627292 -0.07627342 NA NA -0.07442803 NA NA NA
ATG NA NA -0.07627337 NA NA -0.07627283 NA NA