An Examination on the Efficiency Level of G20 Economies to New Investment and Technological Development: Data Envelopment Analysis and Machine Learning

Karadayı T., Önder E.

Eurasiaweb International Conference, Skopje, Macedonia, 25 - 26 August 2023, vol.1, no.1, pp.1-7

  • Publication Type: Conference Paper / Full Text
  • Volume: 1
  • City: Skopje
  • Country: Macedonia
  • Page Numbers: pp.1-7
  • Istanbul University Affiliated: Yes


Problem Statement: All countries race to increase the level of development and welfare."Which of the countries rapid
move?" is among the most frequently spoken table talks. However, not everyone competes on equal terms. While analyzing
countries, each country should be evaluated according to its resources. Advantages and disadvantages should be considered
in subjects such as economic conjuncture, business environment, resources, geography, technology, etc. The issues of
comforting the business environment and adapting to technology constitute the infrastructure of economic progress of
countries. It will be useful to discover questions about which countries are more efficient in these actions according to their
dynamics, and which action is more important.
Methods: G20 countries were divided into two subgroups developed and developing to further increase homogeneity, and
examined. As comparable data, GDP per capita was chosen as the input, and country efficiencies between 2016 and 2020
were examined in reaching Doing Business and Global Connectivity Index scores as outputs. Data Envelopment Analysis
was used to explore efficiency. Then, Machine Learning methods (Decision Tree and Random Forest) were used to
determine which output is more important.
Results: South Korea (in 2016 and 2020) and India (in 2019) shine out as the most efficient variables. Doing Business scores
were more important than Global Connectivity Index for both groups (developed and developing).
Conclusion: It may be beneficial for developed countries to focus on South Korea (especially in 2016 and 2020) while
developing countries concentrate on India (especially in 2019). Additionally, an examination of their policies can be
beneficial to the roadmap of entrepreneurship and policymakers. Regardless of the development level of the countries,
providing a facilitating environment for entrepreneurs and investors and increasing their comfort can make significant
contributions. In any case, there are opportunities, however, the matter is whether they are supported or not.
Abbreviations: GDP (Gross Domestic Product), ICT (Information and Communication Technology), GCI (Global
Connectivity Index), DB (Doing Business), DEA (Data Envelopment Analysis), ML (Machine Learning), DMUs (Decision
Making Units)
Keywords - G20, Doing Business, Global Connectivity Index, Data Envelopment Analysis, Machine Learning, Decision
Tree, Random Forest.