Criteria for the Selection of Industrial Projects in Underdeveloped Countries

This study is an appraisal of several criteria which are used for the selection of industrial projects for underdeveloped countries. The criteria examined are: factor intensity, plant complexity, commercial profitability, and social profitability (social marginal productivity). The purpose of the study is to determine which criterion is the best measure of the total net worth of projects to the economy of the developing country, taking into consideration all measurable economic costs and benefits. It is assumed that development authorities have before them a representative group of sound projects which must be comparatively appraised so that those of greatest economic value may be chosen.