Measuring of International Financial Integration with a Multicriteria Decision Aid Approach

ABSTRACT

Despite the diversity of advanced approaches, the concept of ‘financial integration’ couldn’t be explicitly analyzed. Indeed, empirical studies have shown that the measures of international financial integration are one-dimensional analysis. Due to the ambiguity of the concept and its multiple determinants, it must be analyzed in multidimensional levels. The interest of this research is a proposal of a decision aid by a multicriteria approach (ELECTRE TRI) for determining the ranking of 47 countries according to the links between their degree of international and financial dependencies and the behavior of financial actors (trying to make governance decisions or diversification strategies of international portfolio).

Abbreviations: MCDA – Multi-Criteria Decision Approach

Keywords:

• Financial integration
• ELECTRE TRI
• behavior of actors
• multidimensional

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Tarchoun Monaem

Tarchoun Monaem, a professor of economy, writes on financial integration and multicriteria decision aid approach field. Among his recent articles are: Financial integration: A sensitivity analysis to multi-agent preferences decision (FSEG Sousse, 2016), The dynamics of corruption, FDI, and other macroeconomic variables: Evidence from developed and developing countries (FSEG Sousse, 2016) and Governance and foreign direct investment attractiveness of Tunisia and Morocco countries: A comparative analysis of economic, institutional and political factor (FSEG Sousse, 2016).

Ghraieb Ikram

Ghraieb Ikram, a professor of economy, writes on financial bubbles and neuronal approach field. Among his recent articles are Multi criteria forecasting financial bubbles by neuronal approach (FSEG Sousse, 2016), Behavioral decisions and the risk of the Tunisian financial market: What are the causal connections? (FSEG Sousse, 2016) and Governance and foreign direct investment attractiveness of Tunisia and Morocco countries: A comparative analysis of economic, institutional and political factor (FSEG Sousse, 2016).