Robustness in economic development studies: the case of Tanzania

Abstract

The definition of robustness in econometrics, the error term in a linear equation, was not only broadened, but in addition moved from a cardinal to an ordinal-qualitative one: the most robust one, more robust than…, as robust as……, robust, weak robust, less robust than…, not robust. This interpretation is tested by an application on the Robustness in Economic Development, namely of Tanzania, while considering multiple objectives for development. For robustness the choice of the objectives has to be non-subjective, which is the case if all stakeholders are involved, and if all possible objectives are represented. Normalization has to be non-subjective too, which is possible by the use of a Multiplicative Form or of MOORA (Multi-Objective Optimization by Ratio Analysis). The last one is composed of ratio analysis “senso stricto” and of the Reference Point Method with the previously obtained ratios as a starting point. In this way, three different methods, controlling each other, form an additional guaranty for robustness.