Industrial investment planning
Author(s)/Corporate Author (s)Yemer, Y.;
United Nations. Economic Commission for Africa. African Institute for Economic Development and Planning(IDEP);
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Since the demand for industrial output and the supply of capital and foreign exchange to the industrial sectors depend on the growth of the economy as a whole, industrial planning must "be conceived of as a part of an analysis of the entire economy. Estimates of national income and of the available supplies of capital, labor, and imported goods are needed as a basis for projecting the growth of individual sectors. However, the possibility of achieving a given rate of growth can only be determined from the more detailed study of individual sectors, so that the initial projections of national income and its components must be regarded as preliminary and subject to subsequent revision. the first step in constructing a plan for the industrial sectors is to estimate the final demand for different commodities at the level of income and population predicted for the end of the planning period. The final demand for a commodity is defined as that part of total use that is not devoted to further production. The categories of final demand are therefore the same as the breakdown of the gross national product by uses consumption, investment, and exports. The second step is to estimate the output levels in all sectors. When estimates of final demand by commodity groups have already been made, total output can be estimated by adding demands from other producers and subtracting the amount that is likely to be imported. The most accurate procedure is to use some form of inter-industry analysis.
Citation“Yemer, Y.; United Nations. Economic Commission for Africa. African Institute for Economic Development and Planning(IDEP) (1968-05). Industrial investment planning. Dakar. © UN. IDEP. ”
- Industrialization