IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Accounting for Market Distortions in an Integrated Investment Appraisal Framework

Listed author(s):
  • Kemal Bagzibagli

    ()

    (Department of Economics, Eastern Mediterranean University, North Cyprus)

  • Glenn P. Jenkins

    ()

    (Queen’s University, Canada and Eastern Mediterranean University, North Cyprus)

  • Octave Semwaga

    ()

    (Ministry of Finance and Economic Planning, Rwanda)

Public investments are key policy instruments used by governments in pursuing their overall development goals and strategies. Given the limited resources available to an economy, the chosen projects should fit into the overall development strategy, which usually concerns many stakeholder groups. Despite this fact, in practice the appraisal of most investment projects carried out by governments, multilateral financial institutions and consultants have tended to be basically a financial analysis with only a partial, if any, economic evaluation. The stated constraints are largely the time frame in which these appraisals are to be prepared, and the lack of data for carrying out a professionally adequate economic appraisal. This paper reports on an effort in Rwanda that, we believe, has successfully addressed both of these constraints. Our paper first presents the adjustments required to convert the financial values of investment projects into their corresponding economic values in a manner that meets a high standard of professionalism. The paper also describes the comprehensive framework and practical approaches to the estimation of the economic prices and Commodity-Specific Conversion Factors (CSCFs) for project inputs and outputs. The paper applies the framework to tradable and non-tradable goods and services in Rwanda, and estimates their CSCFs to be used in the economic appraisal of investment projects in the country. These analytical frameworks have then been used to develop a web-based database of CSCFs for Rwanda (http://rwanda-cscf.minecofin.gov.rw/), containing more than 5,000 tradable commodities, and non-tradable goods and services such as transportation, construction, electricity, and telecommunication. The database provides easy access from anywhere in the world for project appraisal specialists involved in the formulation, evaluation and implementation of projects, and allows them to conduct an up-to-date economic appraisal of investment projects in a professionally satisfactory manner.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.queensjdiexec.org/publications/qed_dp_260.pdf
Download Restriction: no

Paper provided by JDI Executive Programs in its series Development Discussion Papers with number 2014-05.

as
in new window

Length: 64 pages
Date of creation: May 2014
Handle: RePEc:qed:dpaper:260
Contact details of provider: Postal:
Kingston, Ontario, K7L 3N6

Phone: (613) 533-2250
Fax: (613) 533-6668
Web page: http://www.econ.queensu.ca/
Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:qed:dpaper:260. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bahman Kashi)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.