Title: Integrated assessment of export performance in chemical industries by multivariate approach

Authors: Ali Azadeh, G.H. Ataei

Addresses: Department of Industrial Engineering, Research Institute of Energy Management and Planning and Department of Engineering Optimization Research, Faculty of Engineering, University of Tehran, P.O. Box 11365–4563, Iran ' Department of Systems Engineering, National Iranian Oil Company (NIOC), Tehran, Iran

Abstract: This paper presents a framework for integrated assessment of export performance in chemical industries. The integrated approach discussed in this paper is based on Principal Component Analysis (PCA). The validity of the model is verified and validated by Numerical Taxonomy (NT) approach. The integrated assessment is influenced by such shaping factors as export value, production value, export growth, R&D expenditure and value added. Eleven developed and developing countries were selected and their total export performance were assessed and analysed by PCA in two major chemical industries which are: 1) plastics in primary forms and synthetic rubber and 2) pharmaceuticals and medicinal chemicals. The results of PCA show the weak and strong points of each country concerning export performance. This paper presents a unique standard methodology for assessment of chemical industries based export activities which would help managers to have better understanding and improve existing systems with respect to export performance.

Keywords: export performance; indicators; principal component analysis; PCA; numerical taxonomy; international standards; industrial classification; chemical industries; export value; production value; export growth; R&D expenditure; value added; plastics; pharmaceuticals; medicinal chemicals.

DOI: 10.1504/IJPQM.2007.011467

International Journal of Productivity and Quality Management, 2007 Vol.2 No.1, pp.41 - 64

Published online: 30 Nov 2006 *

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