It is proposed in the report that the cost benefit appraisal made of an investment project should be accompanied by an estimate of the associated inter-industry effects. Essentially these are the changes in output in other sectors of the economy necessary to support the change in output of the sector directly affected. The method recommended for calculating these effects is through input-output analysis and a method is described which could be used to produce a proxy table for this purpose when a properly prepared set of inter-sector relationships is not available. This is often the case in developing countries. (Author/publisher)
Abstract