Applying a Fuzzy-Set Approach to Assessing Capital Flight Management: Empirical Research from Azerbaijan


Rzayeva Ü., Mikayilova R.

15th International Conference on Application of Fuzzy Systems, Soft Computing and Artificial Intelligence Tools, ICAFS 2022, Budva, Montenegro, 26 - 27 August 2022, vol.610 LNNS, pp.669-676 identifier

  • Publication Type: Conference Paper / Full Text
  • Volume: 610 LNNS
  • Doi Number: 10.1007/978-3-031-25252-5_88
  • City: Budva
  • Country: Montenegro
  • Page Numbers: pp.669-676
  • Keywords: Capital flight, Evaluation of alternatives, Fuzzy set approach, Macroeconomic indicators, Mamdani rules
  • Azerbaijan State University of Economics (UNEC) Affiliated: Yes

Abstract

The article discusses certain aspects of capital flight as an economic process, formulates methodological techniques for its analysis using the apparatus of fuzzy sets, and substantiates methods for evaluating the scale of this phenomenon based on data on macroeconomic indicators. In the article, this process is assessed as a priority task of national security. The solution of these problems is difficult on the basis of traditionally established approaches. The work explores and analyzes possible organizational schemes, and considers international experience in studying the problem of capital flight and issues of its prevention. The interpretation of the dependence of the capital flight indicator on other macroeconomic indicators based on the provisions of the theory of fuzzy sets makes it possible to reduce the critical dependence on the accuracy of determining their threshold value. Setting parameters and fuzzy rules makes it possible to use the proposed mathematical model to support managerial decision-making.