Assessing the Regional Economic Benefits of Public Investments: A Replicable Methodology and Case Study Application to the Dominican Republic

This paper presents a comprehensive methodological framework designed to assess the regional economic benefits of public investments. Recognizing the challenges of limited resources and data, especially at the regional level, the study aims to enhance operational efficiency in the early phases of investment projects. The framework supports more informed decision-making by facilitating a rapid assessment of potential benefits, using a data-driven approach that leverages input-output analysis to refine understanding of local economic linkages. Adaptable to various regions with readily available economic statistics, the tool requires minimal input. In collaboration with the Ministry of Economics, Planning, and Development and the Ministry of Tourism the framework was applied to the Ozama region in the Dominican Republic, yielding a pilot assessment tool. The model elucidates supply chain connections across fifteen economic sectors. A case study of the IDB's investment in Santo Domingo's Colonial City demonstrates the tool's utility, revealing significant localized GVA and employment impacts. This study highlights the framework's potential to aid early-stage decision-making and cost-benefit analyses. While the current version focuses on short-term impacts, future enhancements aim to address long-term effects and additionality, further broadening the tool's applicability.