Alternative versions of the global competitive industrial performance ranking constructed by methods from social choice theory

Andrey Subochev () and Igor Zakhlebin

MPRA Paper from University Library of Munich, Germany

Abstract: The Competitive Industrial Performance index (developed by experts of the UNIDO) is designed as a measure of national competitiveness. Index is an aggregate of eight observable variables, representing different dimensions of competitive industrial performance. Instead of using a cardinal aggregation function, what CIP’s authors do, it is proposed to apply ordinal ranking methods borrowed from social choice: either direct ranking methods based on the majority relation (e.g. the Copeland rule, the Markovian method) or a multistage procedure of selection and exclusion of the best alternatives, as determined by a majority relation-based social choice solution concept (tournament solution), such as the uncovered set and the minimal externally stable set. The same method of binary comparisons based on the majority rule is used to analyze rank correlations. It is demonstrated that the ranking is robust but some of the new aggregate rankings represent the set of criteria better than the original ranking based on the CIP.

Keywords: Competitive Industrial Performance index; CIP; UNIDO; national competitiveness; aggregate index; competitive industrial performance; ordinal aggregation; social choice; ranking method; majority relation; Copeland rule; Markovian method; social choice function; tournament solution; uncovered set; externally stable set; binary comparison; rank correlation; Kendall distance (search for similar items in EconPapers)
JEL-codes: C65 E1 F01 F63 L60 (search for similar items in EconPapers)
Date: 2014-07-25
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in National Research University Higher School of Economics Working Papers Working paper WP7/2014/06 (2014): pp. 1-28

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/67462/1/MPRA_paper_67462.pdf original version (application/pdf)

Related works:
Working Paper: Alternative versions of the global competitive industrial performance ranking constructed by methods from social choice theory (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:67462

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().