DEA Assessment of Socio-economic Development of European Countries

  • Jelena J Stanković University of Niš, Faculty of Economics
  • Ivana Marjanović University of Niš, Faculty of Economics
  • Nebojša Stojković University of Niš, Faculty of Economics

Abstract

Research Question: The study is aimed to explore the achieved level of socio-economic development of European countries, providing their efficiency analysis. Motivation: Current trends in the social wellbeing quantification indicate the neediness to change the perception of growth that relies solely on economic performance and the requisite to develop new approaches in measuring societal progress that, in addition to economic, includes the social performance of the national economy. Modern concepts are designed to encompass both the economic aspect and social goals. Therefore, the purpose of this paper is to contribute to the development of a methodological approach that can be applied to assess the level of socio-economic development. Idea: The study has been developed with the main idea to empirically assess and quantify the socio-economic development of European countries in order to improve traditional performance measures, which are primarily focused on economic aspects, omitting other aspects of sustainability. Data: A sample of 32 European countries was empirically analysed based on the data on socio-economic development indicators in 2018 (employment rates, mean equivalised net income, GDP per capita PPS, and percentage of people at risk of poverty and social exclusion) obtained from EU Statistics on Income and Living Conditions (EU-SILC) and Eurostat database. Tools: The assessment of the achieved level of socio-economic development was carried out using a Data Envelopment Analysis (DEA) based on the BCC output-oriented model with four output variables. Findings: Most of the EU28 countries (26 out of 28) do not achieve satisfactory levels of socio-economic efficiency. Additionally, countries of Northern and Western Europe achieve greater socio-economic efficiency, compared to the countries of Southern Europe. Four countries have a satisfactory level of socio-economic efficiency (the Czech Republic, Luxembourg, Switzerland and Norway). Contribution: This paper contributes to the existing literature in the field of socio-economic sustainability assessment through testing of the model with empirical data on European countries.

Author Biographies

Jelena J Stanković, University of Niš, Faculty of Economics

Jelena J. Stanković is an associate professor at the Faculty of Economics, University of Nis, for the scientific field Mathematics and Statistics in Economics. Her scientific interests are related to methods and models of operational research and decision theory, but also to statistical analysis in strategy evaluation and business decision making. She gained most of her experience in conducting research that involves the collection and analysis of data in the field of local economic development, labour market and urban economics. She is an active member of the Committee for Economic Sciences of the Serbian Academy of Sciences and Arts.

Ivana Marjanović, University of Niš, Faculty of Economics

Ivana Marjanović is a teaching assistant at the Faculty of Economics, University of Nis, for the scientific field Mathematics and Statistics in Economics. Her field of scientific interest is the application of quantitative methods in economics. She has obtained most of her experience in conducting quantitative and qualitative research in the area of urban economy and public procurements, and also a noteworthy experience in project management. She has good theoretical knowledge about the statistics as well as practical knowledge and skills related to the methodology of survey implementation, data collection, data processing and data analyses. 

Nebojša Stojković, University of Niš, Faculty of Economics

Nebojsa V. Stojković is a full professor at the Faculty of Economics, University of Nis, for the scientific field Mathematics and Statistics in Economics. His field of scientific interest is applied mathematics, theory of computation and computing in mathematics, operational research, decision theory and statistical analysis.

Published
2020-07-23
How to Cite
Stanković, J., Marjanović, I., & Stojković, N. (2020). DEA Assessment of Socio-economic Development of European Countries. Management:Journal Of Sustainable Business And Management Solutions In Emerging Economies, . doi:10.7595/management.fon.2020.0012
Section
Articles