Multidimensional Assessment of the European Union Countries Performance

Abstract Book of the 10th International Conference on Advanced Research in Management, Business and Finance

Year: 2026

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Multidimensional Assessment of the European Union Countries Performance

Dagmara Ratnayake Kascakova, Beata Sofrankova

ABSTRACT:

The evaluation of national economic performance currently requires a multidimensional approach that takes into account digital, economic, and environmental factors. Such an approach enables a more comprehensive understanding of the interconnections between technological change, economic productivity, and the requirements of sustainable development. The aim of this paper is to construct a composite index for assessing the performance of European Union countries and, based on this index, to evaluate their comparative performance and changes in their relative positions in 2021 and 2023. The analysis is based on a sample of 27 European Union countries and employs fifteen indicators aggregated into three dimensions – digital, economic, and environmental. To ensure data comparability, the indicators were transformed and normalized using the min–max method. The construction of the composite index was carried out using the multi-criteria decision-making method TOPSIS, which allows for a synthetic evaluation of the relative performance of countries based on their distance from the ideal and anti-ideal solutions. The results reveal significant differences in performance among European Union member states. The highest values are primarily achieved by countries in Northern and Western Europe, characterized by higher levels of digitalization, economic productivity, and environmental efficiency. In contrast, several countries in Southern and Eastern Europe exhibit lower index values. The findings also indicate only modest dynamics of change in performance over the observed period, suggesting the persistence of regional disparities within the European Union and highlighting the need for coordinated policies that support balanced and sustainable development of European economies.

Keywords: Digital Dimension; Economic Dimension; Environmental Dimension; Composite Index; TOPSIS Method