TY - JOUR
T1 - Evaluating investment projects in the presence of sectoral linkages
AU - Matouschek, Niko
AU - Venables, Anthony J.
PY - 2005/10
Y1 - 2005/10
N2 - 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 characterize the factors that determine the project's welfare impact. We link analytical findings to case studies undertaken for the EBRD.
AB - 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 characterize the factors that determine the project's welfare impact. We link analytical findings to case studies undertaken for the EBRD.
KW - Economic development
KW - Foreign investment projects
KW - Sectoral linkages
UR - http://www.scopus.com/inward/record.url?scp=33747052305&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=33747052305&partnerID=8YFLogxK
U2 - 10.1111/j.0967-0750.2005.00233.x
DO - 10.1111/j.0967-0750.2005.00233.x
M3 - Article
AN - SCOPUS:33747052305
VL - 13
SP - 573
EP - 603
JO - Economics of Transition
JF - Economics of Transition
SN - 0967-0750
IS - 4
ER -
