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The "effects method" of project evaluation (French)

The effects method of project appraisal, which is widely used in French-speaking African countries, is critically evaluated. The effects method values products and their tradeable inputs at shadow or world market prices. Primary factors other than capital are valued at their market prices or assigned a shadow price of zero. The effects method disregards the possible choice among alternative sources of supply of tradeable inputs. Recommendations are presented regarding the modification of the effects method by shadow pricing all primary factors and tradeable inputs. Thus it would be equivalent to the domestic resource cost and rate of return methods. 8 references.

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Citation

Balassa,Bela

The "effects method" of project evaluation (French). World Bank reprint series ; no. REP 55 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/568781467980450115/The-effects-method-of-project-evaluation