Key Areas of Economic Analysis of Investment Projects (ADB)

Economic analysis helps assess sustainability of investment projects that will improve the welfare of the beneficiaries and a country as a whole. This pamphlet, the 3rd edition,1 outlines the key areas of economic analysis. It emphasizes that analysis begins at the first stages of project identification, during country partnership strategy preparation, and continues iteratively throughout the project cycle. Economic analysis must be coordinated with institutional, financial, environmental, social, and poverty analyses, forming an integral part of investment appraisal.