Analysis of the Method for the Selection of Regions with Concentrated State Aid

Abstract

The paper deals with the analysis of a method used by the Czech Government and the Ministry for Regional Development to select regions with concentrated state aid. It contains a comparison with several different basic methods of multi-criteria decision-making (MCDM). The analysis focuses on a mathematical algorithm of the established MCDM method and does not consider validity of any selected socioeconomic criteria and their weights. Both the strengths and weaknesses of the used MCDM method are presented. The paper includes a simple proposal of the modification of the examined method that will prevent incorrect data normalisation used for region’s evaluation before revision in 2010. Data used for all calculations were obtained from the Ministry for Regional Development.