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The economic analysis of sector investment programs

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  • Suthiwart-Narueput, Sethaput
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    Abstract

    This paper discusses the economic analysis of sector investment or expenditure programs, collectively referred to as SIPS. There are many different views as to what actually constitutes a SIP. For the purposes of this paper, the essential feature of a SIP that is focused on is that the Government, World Bank, and other donors jointly finance an agreed-upon forward sectoral expenditure program. A SIP may also have many different objectives. Again, for the purposes of this paper, a critical objective of a SIP is to improve the development impact of public expenditures in the sector. Suthiwart-Narueput focuses on how to use economic analysis to help sector investment programs improve the development impact of public spending. He uses Kenya as a case study. The paper is organized as follows. Section 2 proposes a methodology for the economic analysis of SIPS which emphasizes evaluating the sectoral expenditure program based on principles of public expenditure analysis. Particular emphasis is placed on identifying the rationale for public intervention and improving cost-recovery. Section 3 discusses alternative methodologies, e.g., cost-benefit analysis. Section 4 applies the proposed methodology to the Kenya Agricultural SIP. Section 5 concludes.

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    Bibliographic Info

    Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1973.

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    Date of creation: 30 Sep 1998
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    Handle: RePEc:wbk:wbrwps:1973

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    Related research

    Keywords: Business Environment; Environmental Economics&Policies; Health Economics&Finance; Decentralization; Economic Theory&Research; Environmental Economics&Policies; Business in Development; Business Environment; Health Economics&Finance; Poverty Assessment;

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    1. Devarajan, Shantayanan & Squire, Lyn & Suthiwart-Narueput, Sethaput, 1997. "Beyond Rate of Return: Reorienting Project Appraisal," World Bank Research Observer, World Bank Group, vol. 12(1), pages 35-46, February.
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