Developing Statistical Optimization Models for Urban Competitiveness Index: Under the Boundaries of Econophysics Approach

Abstract

The purpose of this research was to establish the urban competitiveness index (UCI) by using the statistical optimization method for the econophysics approach. With this technique, economic data regarding urban areas and the factors affecting UCI have been determined. The research covers 30 urban centres located in 15 countries worldwide. Urban centres with the gross domestic product per capita of $10,000 or more were taken into consideration. The significant levels of the factors were determined with the statistical optimization method, and optimum values were calculated with the developed optimization models. Re-index values were calculated and compared with the results of PricewaterhouseCoopers and World Economic Forum. According to the results, the high UCI value of these locations depends not only on economic data but also on high values of social factors. Thus, those locations are becoming the centre of attraction for investments and capital with increasing competitiveness.