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National Economic Parameters

In: Project Analysis in Developing Countries

Author

Listed:
  • Steve Curry

    (Asian Development Bank)

  • John Weiss

    (University of Bradford)

Abstract

This chapter discusses the national economic parameters (NEP) required for project analysis. Such parameters are ‘national’ in that they apply to all projects regardless of their sector, and they are ‘economic’ in that they reflect the economic value of the items concerned. A typical set of NEP covers CFs for unskilled and skilled labour, some of the main non-traded sectors, some aggregate CFs, such as a consumption conversion factor (CCF) and a standard or what is often termed in these studies the average or standard conversion factor (SCF), and the discount rate. A project analyst can apply these parameters directly to the project under analysis so that, for example, the discount rate or a conversion factor for electricity does not need to be re-estimated for every project. Some economic pricing will still need to be done at the project level, relating to the main project output and key inputs, and probably also to labour. However the existence of a set of NEP allows the project analyst to focus on parameters that are treated most accurately on a specific project-by-project basis.

Suggested Citation

  • Steve Curry & John Weiss, 2000. "National Economic Parameters," Palgrave Macmillan Books, in: Project Analysis in Developing Countries, edition 0, chapter 12, pages 300-322, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-37511-6_12
    DOI: 10.1057/9780230375116_12
    as

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