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Journal Article
Evaluating Investement Projects in the Presence of Sectoral Linkages
Economics of Transition
Author(s)
In this paper we develop a framework to assess the economic impact of foreign investment projects. If investment projects interact with other industries in the host economy, either by buying inputs locally or by selling their own product to local downstream firms, they can create sectoral linkages. The expansion of upstream and downstream industries can feed back to the project's own industry leading to a further expansion of the local industry. We study the circumstances under which investment projects lead to the creation of sectoral linkages and characterise the factors that determine the project's welfare impact. We link analytical findings to case studies undertaken for the EBRD.
Date Published:
2005
Citations:
Matouschek, Niko, Tony Venables. 2005. Evaluating Investement Projects in the Presence of Sectoral Linkages. Economics of Transition. (4)573-603.