A multi-criteria decision analysis of country selection for trade specialization in Asia

Abstract Trade specialization is vital for sustainable development, enhancing productive capacities and economic integration. Despite its importance in international trade, but remains underexplored. We analyse by applying the technique for order performance by similarity to the ideal solution (TOPSIS) to identify the top 10 Asian economies with the highest trade specialization potential. The findings highlight China, Japan, and Singapore as the leading economies, excelling in key indicators such as GDP, FDI, and Exports. The results confirm the applicability of TOPSIS in complex economic evaluations, demonstrating that factors like RCA, Export Share, and innovation significantly influence a country's trade position. Additionally, the paper underscores that economies with strong economic fundamentals, diversified export profiles, and advanced technological capabilities are well-positioned to shape regional trade dynamics. JEL Code: F10, F14, F19, P45