Economic Performance Evaluation of Fragile 5 Countries After the Great Recession of 2008-2009 Using Analytic Network Process and TOPSIS Methods

Journal of Applied Finance & Banking, vol. 5, no. 1, 1-17, 2015 Forthcoming

17 Pages Posted: 18 Dec 2014

See all articles by Emrah Önder

Emrah Önder

Istanbul University - School of Business - Department of Quantitative Techniques

Nihat Taş

Istanbul University - School of Business, Department of Quantitative Methods

Ali Hepsen

Istanbul University - Faculty of Business Administration, Department of Finance

Date Written: January 1, 2015

Abstract

Economic performance evaluation problem consists many criteria and sub criteria. Therefore it is a kind of multi-criteria decision making (MCDM) problem. It is very important for a country to monitor performance parameters in order to ensure that appropriate and timely decisions and plans can be made. Suitable performance measures can ensure that governments adopt a long-term perspective and allocate the country’s resources to the most effective activities. Fragile five (F5) countries namely Brazil, Turkey, India, Indonesia and South Africa have large and fast growing economies. These developing countries are the members of the G20 countries. But F5 countries have also some economic problems such as current account deficit, external credit and currency. The aim of this study is to evaluate the economic performance model of F5 countries during 2001-2013 periods. Both Analytical Network Process (ANP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) methodologies are used for the outranking of countries using macroeconomic indicators including gross domestic product, current account balance, general government gross debt, general government revenue, general government total expenditure, gross national savings, inflation (average consumer prices), population, total investment, unemployment rate, volume of exports of goods and services, volume of imports of goods and services. In this study, subjective and objective opinions of economy expert turn into quantitative form with ANP.

Keywords: Fragile Five Countries, Economic Crisis, Macro Economic Parameters, Economic Performance Evaluation, Analytic Network Process, TOPSIS

JEL Classification: C53, E00, E27, E29

Suggested Citation

Önder, Emrah and Taş, Nihat and Hepsen, Ali, Economic Performance Evaluation of Fragile 5 Countries After the Great Recession of 2008-2009 Using Analytic Network Process and TOPSIS Methods (January 1, 2015). Journal of Applied Finance & Banking, vol. 5, no. 1, 1-17, 2015 Forthcoming . Available at SSRN: https://ssrn.com/abstract=2539560

Emrah Önder (Contact Author)

Istanbul University - School of Business - Department of Quantitative Techniques ( email )

Istanbul
Turkey

Nihat Taş

Istanbul University - School of Business, Department of Quantitative Methods ( email )

Istanbul Universitesi Avcilar Kampusu
Isletme Fakultesi Avcilar
Istanbul, 34322
Turkey

HOME PAGE: http://aves.istanbul.edu.tr/nihattas/yayinlar

Ali Hepsen

Istanbul University - Faculty of Business Administration, Department of Finance ( email )

Istanbul
Turkey

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