Russia’s Place Vis-à-Vis the EU28 Countries in Digital Development: A Ranking Using DEA-Type Composite Indicators and the TOPSIS Method

The European Commission's Digital Economy and Social Index (DESI) is a composite index that aims to measure the state of digital transformation in the European Union (EU) and its member states based on five principal dimensions. For each dimension, the Commission assigns predefined weights to determine the ranking of countries. The following paper ranks the member states using the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method. TOPSIS is based on two data transformations. First, it normalizes the data according to a chosen procedure and second, it assigns weights to the criteria. The aim of the study is to evaluate how the countries of the European Union can be ranked according to the five principal dimensions of the DESI but using objective weights instead of the arbitrary predefined weights of the European Commission, testing the robustness of the ranking and its sensitivity to the methods of normalization and weighting.

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Measuring digital development: ranking using data envelopment analysis (DEA) and network readiness index (NRI)

Bánhidi,

Dobos

2024

Cent Eur J Oper Res

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The Network Readiness Index (NRI) is one of the most prominent indicators that shows the digital development of countries. In contrast to the International Digital Economy and Social Index (I-DESI) of the European Union (EU), in 2020, it showed the development of 134 countries compared to 45 countries in I-DESI of EU, which measures only the most developed countries. The aim of this paper is to provide a viable alternative framework to the equal weights scheme of the original NRI scoring model using the Data Envelopment Analysis (DEA) Without Explicit Input (WEI) method and Common Weight Analysis (CWA) method. After determining the common weights, we compare the digital development of the countries in the NRI dataset based on the results obtained, focusing on the countries of the Central and Eastern European (CEE) region and the former Soviet Union.

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Russia’s Place Vis-à-Vis the EU28 Countries in Digital Development: A Ranking Using DEA-Type Composite Indicators and the TOPSIS Method

Cited by 3 publications

References 21 publications

Multicollinearity Analysis of DESI Dimensions for Russian Federation and EU28 with Variance Inflation Factor (VIF)

Multicollinearity Analysis of DESI Dimensions for Russian Federation and EU28 with Variance Inflation Factor (VIF)

Sensitivity of TOPSIS ranks to data normalization and objective weights on the example of digital development

Measuring digital development: ranking using data envelopment analysis (DEA) and network readiness index (NRI)

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