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The usefulness of the economic impact analysis by Fabiola Groshan






The usefulness of the economic impact analysis by
Article Posted: 04/23/2012
Article Views: 65
Articles Written: 9448
Word Count: 561
Article Votes: 0
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The usefulness of the economic impact analysis


 
Business
The EIA, which stands for Eeconomic Iimpact Aanalysis (EIA), is a greatly useful tool for economists, analysts and researchers, because it allows them to evaluate and determine how the policies generated by economic analysis impact the economy. In greater detail, this type of economic research assesses the effects of different kinds of programs and projects on the economic performance of the area in which they were implemented in. Tthis area couldan either be a neighborhood, a small community or world-wide the whole wide world and the impact is measured in terms of established economic indicators. The most common and standard criteria are the level of income, the employment status and the economic growth, each being represented in its turn by certain indexes. The level of income, for instance, is represented by the value of salaries, while the economic growth is expressed by the output or the added value. Therefore, economic analysis and research are of great importance for economists and analysts, but not only for them, as people are starting to become more and more aware of the significance of keeping oneself informed about the evolution of economy., in a generation in which financial issues influence almost all aspects of life. Fortunately, we also live in a world where access to information has become highly facilitated and convenient, through all types of media channels and of course, via Internet.

The economic impact is a thorough and intricate process , which startings withoff by estimating the economic level of the chosen area at the specific moment in time, when the particular project is being implemented or at a later time, when an economic policy has been adopted. The next step of the process would be comparesing the gathered results and indicators with entries and records of the same area in the case of having made no changes, or , which is also known as counterfactual, meaning the contrary to the present situation. So basically, the pulling force of an economic impact analysis is the counterfactual analysis, which evaluates the economic performance and status of the same region, when no projects or economic programs had been integrated. It is all part of a greater challenge, embodied by the environmental impact assessment. As technology and industry have advanced, so did their impact on the environment, which has been ignored for years, but has presently become a major issue. To that extent, economic research has focused on the effects of such implementations on the environment, especially when they regard new industries, which can be damaging to athe community’s in terms of natural surroundings.

Finally, it is easy to conclude that economic research and impact analysis are extremely useful, as they can be integrated and adjusted to a wide range of sectors and areas, from industries and real estates to site selection projects, tourism, agriculture or recreational facilities. Understanding how the economic impact analysis helps improving economic performance and how the decisions that can affect or livelihoods truly make us part of a were reached should be an essential interest of all people, because we live in a highly connected world. There are many economic research companies and organizations that strive to raise awareness among people in thisa fast changing climate.

For more resources regarding economic impact analysis or even about economic research and especially about http://thespellmanreport.com/ please review these pages.

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