Comparative analysis of economic development indicators among South American countries based on a novel MCDM model

Hossein Komasi, Alireza Nemati, Sarfaraz Hashemkhani Zolfani, Nigel L Williams, Jonas Šaparauskas

Comparative analysis of economic development indicators among South American countries based on a novel MCDM model

Číslo: 3/2024
Periodikum: Journal of Competitiveness
DOI: 10.7441/joc.2024.03.05

Klíčová slova: Comparative Analysis, Economic Development Indicators, Multiple Criteria Decision Making (MCDM), Modified Indifference Threshold-based Attribute Ratio Analysis (ITARA), Modified Alternative Ranking Order Method Accounting Two-Step Normalization (AROMAN), Root Assessment Method (RAM)

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Anotace: Given the significance of economic development, this paper undertakes a comparative assessment and analysis of the level of economic development among South American countries. Initially, a modified ITARA method was applied to determine criteria weights through the examination of real data. Subsequently, a modified version of AROMAN was introduced and utilized in conjunction with the RAM method to prioritize the nine countries based on eight economic development indicators . The findings from the modified AROMAN method indicate that Brazil ranks first among the nine studied countries in South America in terms of economic development indicators, while Argentina occupies the last position (ninth). The results obtained from the RAM method for assessing the economic development level of the 9 South American countries based on the eight examined indicators exactly align with the findings calculated from the modified AROMAN method. The RIV method has been used to validate and confirm the findings obtained from the modified AROMAN and RAM methods. The results obtained from the RIV method are consistent with those of the modified AROMAN and RAM methods. Therefore, the findings exhibit a high level of validity and reliability. The research results indicate that economic development among South American countries is not uniform.