Measuring local competitiveness: comparing and integrating two methods PCA and AHP

Abstract This article discusses two methods to measure the concept of local competitiveness: Principal Component Analysis (PCA) and Analytical Hierarchy Process (AHP). The goal this analysis is determine whether these used in social sciences research lead comparable model results. By non-parametric tests we show that there a significant correlation between PCA AHP competitiveness indexes. Thereafter, developed mixed method examination can be interchangeably presented illustrated with detailed examples approaches. confirms models. However, modelling results indicate utility situation multicriteria data examination.