Analysing the Economic Resilience of D8 Countries by Using AHP and Topsis Approach

Abstract

Resilience is defined in different ways by different disciplines and different authors, but in general, resilience may be defined as the ability of a system and its component parts to anticipate, absorb, accommodate, or recover the effects of a hazardous event in a timely and efficient manner.  The notion of ‘resilience’ has recently risen to prominence in several disciplines, and has also entered policy discourse.  This paper determines the economic resilience of D-8 countries. AHP and TOPSIS approach have been used to evaluate the ranking of D-8 countries. The weight of different indicators has been derived by expert choice software. The results of the study show that Egypt tops the ranking among D-8 countries, followed by Iran, Nigeria, Pakistan, while Malaysia and Indonesia being at no 7 and 8 respectively due to macroeconomic indicators and the selected determinants of the economic resilience. Policymakers can play an active role in sustaining resilient economies by addressing resources and efforts in the right policy areas without waiting for crises. The paper also presents a tentative approach aimed at developing an index of economic resilience covering four aspects namely macroeconomic stability, microeconomic market efficiency, governance and social development.

Keywords: Economic resilience, , D-8 countries, AHP-TOPSIS

DOI: 10.7176/JESD/12-21-01

Publication date: November 30^th 2021