Evaluating Investment Projects in the Presence of Sectoral Linkages

45 Pages Posted: 3 Nov 2005

See all articles by Niko Matouschek

Niko Matouschek

Northwestern University - Kellogg School of Management; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Anthony J. Venables

University of Oxford; Centre for Economic Policy Research (CEPR)

Abstract

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.

Suggested Citation

Matouschek, Niko and Venables, Anthony J., Evaluating Investment Projects in the Presence of Sectoral Linkages. Economics of Transition, Vol. 13, No. 4, pp. 573-603, October 2005. Available at SSRN: https://ssrn.com/abstract=811005

Niko Matouschek (Contact Author)

Northwestern University - Kellogg School of Management ( email )

2001 Sheridan Road
Evanston, IL 60208
United States
847-491-4166 (Phone)
847-467-1777 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Anthony J. Venables

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
17
Abstract Views
616
PlumX Metrics