Comparative Analysis of Financial Resilience in Developing Countries: A Multi-Criteria Decision-Making Approach
Chapter from the book: Yılmaz, N. (ed.) 2026. Current Approaches in Multi-Criteria Decision Making Techniques.

Hande Eren
Kapadokya University
Esra Aksoy Erzurumlu
Süleyman Demirel University

Synopsis

Global economic and financial crises, high inflation, geopolitical risks, and tightening monetary policies have increased the importance of not only the growth performance of countries but also the resilience of their financial systems to shocks. The aim of this study is to comparatively evaluate the financial resilience levels of developing economies within the G20 using the Multi-Criteria Decision Making (MCDM) approach. In this study, financial resilience is considered as the capacity of economies to maintain their basic financial functions and reach re-equilibrium after a crisis in the face of internal and external shocks. In this context, the financial resilience levels of nine developing countries within the G20 were analyzed using the Financial Development Index, Gross Government Debt (%GDP), Inflation (Consumer Prices, %), and Bank Z-Score indicators. The Preference Selection Index (PSI) method was preferred among MCDM methods because it can objectively determine the criterion weights within the analysis process and evaluate alternatives holistically. In the analyses, the four-year average values ​​of the most recently published data sets for each variable were used. The findings show that the People's Republic of China has the highest level of financial resilience, followed by Brazil and South Africa. The results reveal that evaluating indicators of financial development, public debt, inflation, and banking stability together contributes to a more comprehensive analysis of countries' financial resilience levels. The study is expected to contribute to the literature on the multidimensional assessment of financial resilience in developing economies, as well as provide policymakers with comparative findings they can utilize in their decision-making processes regarding strengthening financial systems.

How to cite this book

Eren, H. & Aksoy Erzurumlu, E. (2026). Comparative Analysis of Financial Resilience in Developing Countries: A Multi-Criteria Decision-Making Approach. In: Yılmaz, N. (ed.), Current Approaches in Multi-Criteria Decision Making Techniques. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub1363.c5513

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Published

June 30, 2026

DOI