IDEAS home Printed from https://ideas.repec.org/p/csl/devewp/182.html
   My bibliography  Save this paper

Cost-benefit Analysis and Rates of Return of Development Projects: An International Comparison

Author

Listed:
  • Massimo Florio

    (University of Milan, Italy)

Abstract

No abstract is available for this item.

Suggested Citation

  • Massimo Florio, 2003. "Cost-benefit Analysis and Rates of Return of Development Projects: An International Comparison," Development Working Papers 182, Centro Studi Luca d'Agliano, University of Milano.
    • Handle: RePEc:csl:devewp:182
    Note: In this paper we analyse data on the rates of return of investment projects sponsored by three international institutions: the European Union, the European Bank for Reconstruction and Development, the World Bank. The focus of the paper is on the evaluation of the variability of ex-ante economic rates of return, of financial rates of return and ex-post or re-estimated economic rates of return. We propose a framework of analysis of rates of return variations across projects, sectors, financing institutions, of the wedge between economic and financial, and of the gap between ex-ante and ex-post returns. In principle the same framework could be used for comparing rates of return variability of development projects across countries, time of approval or exit, or other relevant sampling criterion. We discover a pattern of variations across sectors. And we find that cost-benefit analysis generates larger variability of rates of return than financial analysis.
    as

    Download full text from publisher

    File URL: https://www.dagliano.unimi.it/media/WP2003_182.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jonathan Isham & Daniel Kaufmann, 1999. "The Forgotten Rationale for Policy Reform: The Productivity of Investment Projects," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 149-184.
    2. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-1196, September.
    3. Massimo Florio, 1997. "The economic rate of return of infrastructures and regional policy in the European Union," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 68(1), pages 39-64, March.
    4. Pohl, Gerhard & Mihaljek, Dubravko, 1992. "Project Evaluation and Uncertainty in Practice: A Statistical Analysis of Rate-of-Return Divergences of 1,015 World Bank Projects," The World Bank Economic Review, World Bank, vol. 6(2), pages 255-277, May.
    5. Nicholas Stern, 2002. "A Strategy for Development," World Bank Publications - Books, The World Bank Group, number 15213, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roland-Holst, David & Sugiyarto, Guntur, 2014. "Growth Horizons for a Changing Asian Regional Economy," ADB Economics Working Paper Series 392, Asian Development Bank.
    2. Cavallo, Eduardo & Daude, Christian, 2011. "Public investment in developing countries: A blessing or a curse?," Journal of Comparative Economics, Elsevier, vol. 39(1), pages 65-81, March.
    3. Chiara Del Bo & Massimo Florio, 2010. "Cost–Benefit Analysis and the Rates of Return of Infrastructure Projects: Evidence from International Organizations," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 17(3), pages 587-610, September.
    4. Atolia, Manoj & Chatterjee, Santanu & Turnovsky, Stephen J., 2010. "How misleading is linearization? Evaluating the dynamics of the neoclassical growth model," Journal of Economic Dynamics and Control, Elsevier, vol. 34(9), pages 1550-1571, September.
    5. repec:lrk:lrkwkp:fiirs016 is not listed on IDEAS
    6. Ingrid Ott & Susanne Soretz, 2006. "Governmental activity, integration, and agglomeration," Working Paper Series in Economics 57, University of Lüneburg, Institute of Economics.
    7. Feng, Qu & Wu, Guiying Laura, 2018. "On the reverse causality between output and infrastructure: The case of China," Economic Modelling, Elsevier, vol. 74(C), pages 97-104.
    8. Olivier Blanchard & Michael Kremer, 1997. "Disorganization," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1091-1126.
    9. Gulyani, Sumila, 2001. "Effects of Poor Transportation on Lean Production and Industrial Clustering: Evidence from the Indian Auto Industry," World Development, Elsevier, vol. 29(7), pages 1157-1177, July.
    10. Mr. Yehenew Endegnanew & Dawit Tessema, 2019. "Public Investment in Bolivia: Prospects and Implications," IMF Working Papers 2019/151, International Monetary Fund.
    11. Andreas Stephan, 1997. "The Impact of Road Infrastructure on Productivity and Growth: Some Preliminary Results for the German Manufacturing Sector," CIG Working Papers FS IV 97-47, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    12. Urrunaga, Roberto & Aparicio, Carlos, 2012. "Infrastructure and economic growth in Peru," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    13. Zheng, Xinye & Li, Fanghua & Song, Shunfeng & Yu, Yihua, 2013. "Central government's infrastructure investment across Chinese regions: A dynamic spatial panel data approach," China Economic Review, Elsevier, vol. 27(C), pages 264-276.
    14. Denizer, Cevdet & Kaufmann, Daniel & Kraay, Aart, 2013. "Good countries or good projects? Macro and micro correlates of World Bank project performance," Journal of Development Economics, Elsevier, vol. 105(C), pages 288-302.
    15. BADALYAN, Gohar & HERZFELD, Thomas & RAJCANIOVA, Miroslava, 2014. "Transport Infrastructure And Economic Growth: Panel Data Approach For Armenia, Georgia And Turkey," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 17(2), pages 1-10, October.
    16. Marrocu, Emanuela & Paci, Raffaele, 2011. "They arrive with new information. Tourism flows and production efficiency in the European regions," Tourism Management, Elsevier, vol. 32(4), pages 750-758.
    17. Knut Sandberg Eriksen, 2011. "Do road investments lead to economic growth?," ERSA conference papers ersa10p1613, European Regional Science Association.
    18. Matthew Abiodun Dada, 2015. "Theoretical Analysis of Microeconomic Effect of Public Investment," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 3(1), pages 1-7, March.
    19. repec:dau:papers:123456789/5253 is not listed on IDEAS
    20. Antonio Soares Martins Neto & Gilberto Tadeu Lima, 2017. "Competitive Exchange Rate and Public Infrastructure in a Macrodynamic of Economic Growth," Metroeconomica, Wiley Blackwell, vol. 68(4), pages 792-815, November.
    21. Juan Martín & Gustavo Nombela, 2007. "Microeconomic impacts of investments in high speed trains in Spain," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 41(3), pages 715-733, September.
    22. Herranz-Loncan, Alfonso, 2007. "Infrastructure investment and Spanish economic growth, 1850-1935," Explorations in Economic History, Elsevier, vol. 44(3), pages 452-468, July.

    More about this item

    Keywords

    Investment projects; International Institutions; Rates of return; Cost-benefit;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:csl:devewp:182. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chiara Elli (email available below). General contact details of provider: https://edirc.repec.org/data/damilit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.