An Application of Integrated FAHP/DEA Approach for Evaluating Investment Efficiency of NUTS-2 territorial units in Turkey with non-discretionary factors

Abstract

Especially in the last years, determining of differences between regions and sub-regions have been moved much higher up due to the, environmental awareness and the government laws. An ıntegrated Fuzzy Analytic Hierarchy Process (FAHP) and Data Envelopment Analysis (DEA) method is applied in order to compare 26 territorial units (has been determined with NUTS classification).The applied approach consists of two stage and we can evaluate the efficiency scores of the alternatives by the integrated FAHP/DEA approach. At the first stage, linguistic terms are used to determine the decision makers’ opinion and converted to quantitative forms by using FAHP. After that, we combined the FAHP results with quantitative data and rank the alternatives by using DEA. We applied the integrated algorithm to the 26 territorial units of Turkey and showed efficiency of the algorithm. Finally according to the results, some policy implications are given.