Fuzzy expert system of the decision-making support on foreign direct investment

Abstract

This paper develops and optimizes a fuzzy expert system for foreign direct investment decision support. The paper aims to provide a reliable and flexible tool for investors to evaluate the attractiveness of different countries for foreign direct investment. The paper uses an adaptive gravitational search algorithm to determine the optimal parameters of the fuzzy expert system, such as the membership functions for linguistic input and output variables. The paper also uses a quality criterion that considers the specificity of the fuzzy expert system and allows assessing the probability of future decisions. The paper conducts a numerical study to test the performance of the proposed fuzzy expert system and compares it with other existing methods. The results show that the proposed fuzzy expert system has a high accuracy and robustness in foreign direct investment decision support. The paper contributes to the literature on fuzzy logic applications in economics and finance and provides a practical tool for investors to make informed decisions on foreign direct investment.