The chief purpose of this study is to search the representative indicators of national development. Nine indicators were used in the Cluster Analysis, which clusters 102 sample countries into four groups: advanced,semi-advanced, partial developed, and underdeveloped countries. The raw data are adapted from the World Bank report 1987 and the nine indicators used are GNP, life expectancy at birth, percentage of labor force in agriculture, urban population as percentage of total population, population per physician, total ferility rate, number enrolled in primary school, secondary school, and higher education as percentage of each age group. In order to examine the suitability of clustering, Discriminant Analysis was employed to reclassify the clustered countries. 90.2% of countries were correctly reclassified. The ROC, Taiwan is classified as a semi-advanced country as done by Harbison & Myers in 1964. According to the discriminant scores, Taiwan is located at the borderline between semi-advanced and advanced country group in the territorial map. Solutions to the problems confronted by Taiwan as a semi-advanced country are suggested. The another purpose of this study is to find the relationship between educational development and economic develpment. In a regression equation the GNP was used as criterion and the other eight variables as predictors. After considering the multicollinearity, the results showed that each independent variable has significant influence on GNP (p<.0001).