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Assessing and forecasting method of financial efficiency in a free industrial economic zone

Author

Listed:
  • Tomás José Fontalvo-Herrera
  • Enrique Delahoz-Dominguez
  • Orianna Fontalvo-Echavez

Abstract

Industrial free zones are key to the economic progress of developing countries, making the evaluation and forecast of efficiency in these organisations relevant. This research proposes a three-phase method to evaluate and forecast the financial efficiency of the business profiles of companies belonging to the free economic zone of Cartagena - Colombia. The first phase consisted of a cluster analysis to determine representative groups among the companies analysed. In the second phase, financial efficiency is measured for each of the clusters found in phase 1. Finally, in phase 3 a machine learning model is trained and validated to predict the belonging of a company to a category of financial efficiency - cluster. The results show the creation of two business clusters, with an average efficiency of 49.8% and 14.6% respectively. The random forest model has an accuracy of 95% in the validation phase.

Suggested Citation

  • Tomás José Fontalvo-Herrera & Enrique Delahoz-Dominguez & Orianna Fontalvo-Echavez, 2021. "Assessing and forecasting method of financial efficiency in a free industrial economic zone," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 33(2), pages 253-270.
    • Handle: RePEc:ids:ijpqma:v:33:y:2021:i:2:p:253-270
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