Assessment of regional economic restorability under the stress of COVID-19 using the new interval type-2 fuzzy ORESTE method

Abstract

AbstractThe economic implications from the COVID-19 crisis are not like anything people have ever experienced. As predictions indicated, it is not until the year 2025 may the global economy recover to the ideal situation as it was in 2020. Regions lacked of developing category is among the mostly affected regions, because the category includes weakly and averagely potential power. For supporting the decision of economic system recovery scientifically and accurately under the stress of COVID-19, one feasible solution is to assess the regional economic restorability by taking into account a variety of indicators, such as development foundation, industrial structure, labor forces, financial support and government's ability. This is a typical multi-criteria decision-making (MCDM) problem with quantitative and qualitative criteria/indicator. To solve this problem, in this paper, an investigation is conducted to obtain 14 indicators affecting regional economic restorability, which form an indicator system. The interval type-2 fuzzy set (IT2FS) is an effective tool to express experts’ subjective preference values (PVs) in the process of decision-making. First, some formulas are developed to convert quantitative PVs to IT2FSs. Second, an improved interval type-2 fuzzy ORESTE (IT2F-ORESTE) method based on distance and likelihood are developed to assess the regional economic restorability. Third, a case study is given to illustrate the method. Then, robust ranking results are acquired by performing a sensitivity analysis. Finally, some comparative analyses with other methods are conducted to demonstrate that the developed IT2F-ORESTE method can supporting the decision of economic system recovery scientifically and accurately.