Assessment of business and social environment in the South Caucasus countries by multi-criteria analysis methods (სამხრეთ კავკასიის ქვეყნებში ბიზნესის და სოციალური გარემოს შეფასება მრავალკრიტერიუმიანი ანალიზის მეთოდებით)

Abstract

The paper discusses business and social environment trends on the example of Georgia, Armenia and Azerbaijan, which revealed that the quality of life, the level of human development and various economic indicators partly determine the business and social environment in the countries of the South Caucasus. The topic is relevant, as the assessment of the impact of the business and social environment will reflect not only the image of a single country, but also the South Caucasus region, which can further become the basis for deepening integration into world processes. In research innovative multi-criteria analysis methods developed for stakeholders will help to properly select a partner country with different priorities in mind. The study includes 10 years of data using multi-criteria analysis (MCDM) methods, as the best means of discussing social and economic problems. Initially, the most important criteria were identified by investors, on which we partially used the Analytical Hierarchy Process (AHP) method, and then the Comprehensive Proportionality Assessment (COPRAS) method. The paper identified useful and unhelpful criteria for the stakeholder in a particular country. The paper identifie ,,Beneficial’’ and ,,Non-Beneficial’’ criteria for the stakeholder in a particular country and also outlined the list of positive and negative alternatives that each country needs to improve. The research showed that Georgia is almost always the leader in international rankings, followed by Armenia and then Azerbaijan, however, it should be noted that the situation with regard to economic indicators is changing. The reason for this is often considered natural resources. Finally, the Complex Proportional Assessment of alternatives (COPRAS) method presented Azerbaijan as a leading country in assessing the business and social environment in the region, taking into account various criteria, then followed by Georgia and Armenia with a 71,21% and 42,32% Utility Degree.