ABSTRACT
The general purpose of economic impact assessment is to measure changes in the level of economic activity which result from a specific action such as the introduction of a new plant into an area. The factors leading to differing rates of economic growth among regions have received increasing attention. Regional scientists, principally economists and geographers, have developed a number of theoretical concepts which provide the conceptual foundations of economic impact analysis. The chapter reviews the major methodological alternatives for economic impact assessment. The two principal methods used in economic impact assessment are the export base and input-output techniques. The chapter describes both of these techniques, including a discussion of each model's basic concepts, its data requirements, the nature of its outputs, and its conceptual and pragmatic strengths and limitations. The characteristics of the development project are central in determining the nature and extent of all forms of economic impacts.
