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Abstract: The socio-economic development of economic-territorial units subordinate to administrative-management institutions appears as one of the main tasks. The values of alternative indicators reflecting socio-economic development may differ, which makes it difficult to unambiguously assess the importance of the indicators. The applied available methods are either too receptive or does not provide sufficient accuracy. The proposed FARE-M methodology for determining the importance of indicators is the prolongation of the technique for establishing the importance of FARE (Factor Relationship) weights already used for research purposes. The employed technique is based on the internal balance of system elements that is the essential systemic feature. This allows, unlike in the case of the AHP method, the weights of the indicators to be determined with reference to the first row of the data matrix only.
Keywords: administrative-management institutions, socio-economic development of economic-territorial units, multi-criteria methods.
JEL: C51, H11, D73
DOI:
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Introduction
One of the most important operational functions of both national and local administrative-management institutions (AMIs) is the adoption of measures for the development of administrative territories and economic entities subordinate to administrative management institutions. The measures cover economic, social, ecological, etc. aspects. Under market economy conditions, it is common practice for several or more alternatives to the solutions to be developed in the first place (Androniceanu et al., 2021). This is not accidental, because the problem of economic is, by nature, complex, integrated, and therefore manifests itself in reality in a variety of respects. Upon the examination of possible alternatives to the above introduced problem, responsible persons must choose the one they consider most appropriate to achieve the goal. At present, such alternative is frequently selected in a purely intuitive way with reference solely on experience and intuition. Meanwhile, the values of the indicators reflecting one alternative may be higher compared to the analogous values of other alternatives, whereas the other values may be lower. In the event of a sufficient number of such indicators, an adequate picture of assessment is hardly possible when neglecting specific methods capable of considering the created complex situation. The situation may further encounter problems in the case indicators are multi-dimensional and change in opposite directions, i.e. an increase in some of the values of certain indicators...