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Assessment of local competitiveness: A composite indicator analysis of Costa Rican counties using the ‘Benefit of the Doubt’ model

Author

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  • Lafuente, Esteban
  • Araya, Manuel
  • Leiva, Juan Carlos

Abstract

This study employs a Benefit-of-the-Doubt (BOD) weighting model that incorporates information generated via a participatory method—i.e., based on experts' opinion—to construct a composite indicator that evaluates the competitiveness level of Costa Rican counties during 2010–2016. The results of the empirical application based on the county competitiveness index (CCI) reveal the superior informative power of the proposed BOD composite indicator, relative to models using equal weight restrictions or weights estimated via principal component analysis. The county competitiveness index is a valuable tool to monitor counties’ competitive level, and the findings underline that an analysis based on the BOD approach may offer useful information to policy makers on what strategic actions may potentially optimize the allocation of local resources and, subsequently, enhance economic outcomes (i.e., business creation and employment).

Suggested Citation

  • Lafuente, Esteban & Araya, Manuel & Leiva, Juan Carlos, 2022. "Assessment of local competitiveness: A composite indicator analysis of Costa Rican counties using the ‘Benefit of the Doubt’ model," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:soceps:v:81:y:2022:i:c:s0038012119306135
    DOI: 10.1016/j.seps.2020.100864
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    More about this item

    Keywords

    Composite indicators; DEA; Benefit of the doubt; Counties; Costa Rica;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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