Country Evaluation of Islamic Economic Criteria: An Application Using Entropy Weight and TOPSIS Methodologies

Mayor-Vitoria F., Garca-Bernabeu A., Nor Aida Abdul Rahman, Mohammad Fakhrulnizam Mohammad

Abstract: While Islamic economy is growing in all sectors, Halal compliance is carried out by more countries worldwide. The purpose of this paper is to establish a methodology based on MCDM methods in order to create an accurate ranking of countries according to the basis of the Halal standards, which can be used by public and private institutions. Although Islamic economy is evaluated globally by different institutions every year, those reports are based on indicators which are equally weighted. In this paper, weights of the six Islamic economy criteria are determined by the EWM (Entropy Weight Method) and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) has been used to create a ranking of countries in terms of the Halal principles.

Keywords: Halal, MCDM, TOPSIS, Entropy, Islamic economy