An integrated fuzzy AHP/DEA approach for performance evaluation of territorial units in Turkey

Abstract

Due to the differences between regions and sub-regions in the countries, some problems come out especially in economic and social life. The issue of differences of regions has been widely implemented to evaluate the economic performance of Turkey in many disciplines. The objective of this paper is to evaluate the efficiency of 26 sub-regions of NUTS-2 classification using integration Fuzzy Analytic Hierarchy Process (FAHP) with Data Envelopment Analysis (DEA). The integrated FAHP/DEA method comprises two stages. In the first stage, linguistic terms are used to determine the decision makers’ opinion and are converted to quantitative forms by using FAHP methods. Subsequently, in the second stage, DEA method is applied to obtain relative efficiency of sub-regions in Turkey. The integrated FAHP/DEA method is illustrated with a real case study.

Keywords

• Fuzzy Analytic Hierarchy Process
• Data Envelopment Analysis
• NUTS-2 classification