GREY RELATIONAL ANALYSIS BASED RANKING OF LATIN AMERICAN AND CARIBBEAN ECONOMIES


Yıldırım B. F. , HEPŞEN A. , ÖNDER E.

Journal of Economics, Finance and Accounting - JEFA, vol.2, pp.301-312, 2015 (Refereed Journals of Other Institutions)

  • Publication Type: Article / Article
  • Volume: 2
  • Publication Date: 2015
  • Title of Journal : Journal of Economics, Finance and Accounting - JEFA
  • Page Numbers: pp.301-312

Abstract

The countries of Latin America and Caribbean have had a modest performance in 
terms of economic growth since 2000. In addition, Latin America and the Caribbean 
has also been characterized as a region with a level of macroeconomic volatility 
much higher than developed economies. From this point of view, the aim of this 
study is to evaluate the economic performance of Latin American and Caribbean 
countries during 2003-2013 periods. 13 countries namely Argentina, Bolivia, Brazil, 
Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Mexico, Panama, Peru, 
Uruguay, Venezuela with highest GDP hold a position of importance in the Region. 
Grey Relational Analysis is used for the outranking of countries using 
macroeconomic indicators including total investment, gross national savings, 
inflation, average consumer prices, volume of imports of goods and services, 
volume of exports of goods and services, unemployment rate, general government 
revenue, general government total expenditure, general government gross debt,
current account balance, gross product domestic (constant). Also annual 
macroeconomic indicators are converted to single data set by using arithmetic 
mean and weighted arithmetic mean (to be focused on recent years). This 
combined data was also used for another economic performance evaluation. The 
results of the empirical analyses show that Mexico and Dominican Republic ranked 
as first and second. The growth in these countries was robust, lifted by 
strengthening activity in the United States. In contrast, Argentina, Bolivia and 
Venezuela were at the bottom. These countries encountered difficulties 
maintaining sustained growth.