Fuzzy estimation of comprehensive depreciation indicators for 21 developing countries
Although depreciation is a crucial factor in economic growth models, little effort has been made to estimate depreciation rates. This study provides the integrated fuzzy indicators for the depreciation rates in 21 peer developing countries. Within the framework of fuzzy logic, first, ten related variables are combined to obtain four depreciation indicators, namely human, social, physical, and natural capital. Then the four indicators are combined to obtain an overall depreciation measure. The results indicate that remarkable gap exists among developing countries. Some degrees of regional convergence is observed: the overall depreciation rates are at the highest level in the CIS countries (circa 0.7) and at the lowest level in some of the developing European nations (circa 0.4).