Comparison of Macroeconomic Performance of MENA Countries with TOPSIS Method

The objective of this article is to build a robust macroeconomic performance index (MPI) of the 16 countries of the MENA region (Algeria, Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, Turkey, and United Arab Emirates) covering the period 2000–2020. An appropriate mathematical model has been implemented to aggregate the four macroeconomic variables: real GDP growth rate, unemployment rate, inflation rate, and trade balance. The MCDM (multiple criteria decision-making) technique of the TOPSIS (technique for order preference by similarity to ideal solution) method was adopted to summarize the various facets of macroeconomic performance in a single statistic. This allows inter-temporal comparison between MENA countries. This article is the first to assess the macroeconomic performance of the Middle East and North Africa region using one of the most appropriate multicriteria decision support methods. In this regard, the paper contains political and economic recommendations for the countries of the MENA region.