Application of DEA in International Market Selection for the export of products from Spain

TL;DR

This paper introduces a DEA-based benchmarking methodology to assist Spanish exporters in selecting optimal international markets by evaluating multiple variables and identifying regions with the highest benefits and lowest costs.

Contribution

It develops a novel DEA-based approach for international market selection that considers multiple variables and regional efficiencies, validated through correlation analysis.

Findings

Identifies regions with highest efficiency for Spanish exports.

Highlights key variables influencing international market success.

Provides a practical tool for export decision-making.

Abstract

This article presents a Benchmarking methodology to support decision-making for international market selection (IMS). In order to do so, we will be using an output-oriented Data Envelopment Analysis (DEA) model. This methodology considers multiple variables validated with a correlation analysis. The methodology is applied to all of the products directly exported from Spain, it takes into consideration different Inputs variables and returns us the efficient and regions generating higher benefits to access international markets with the lowest costs possible.