Economic impact studies

We define the strategy of transactions based on our knowledge of the company, the market and the options available.

 

Economic impact studies

A lot of companies are willing to create jobs and wealth in areas where the Public Authorities grant concessions or specific infrastructure. When the calculations are made, however, they tend to be based on the direct job creation and tend not to recognise the larger part which is indirect job creation.

At Foqus we assess these companies using an Economic Impact Study which gives a clear image, which is accurate, of the foreseeable economic impact a specific course of action may have on a specific geographical area. To do these economic studies we use Marco Imput-Output methodology which is respected world-wide. The use of this type of study provides the company with an element that gives them a head start and which can be a determining factor in winning the contract. Some of the elements we look at using Imput-Output are:

Direct effects

The direct effect is only produced in the lines of activity in which there is increased demand (e.g. Construction) and in value equal to the introduced demand.

Indirect effects

These stem from (production format, VAB and Employment) on activity and economic sectors such as the consequence of the variation in demand of one or various activity sectors. This happens while the demand is redistributed (intermediate demand) across the different sectors.

Induced effects

Effects produced as a consequence of the application within the economic structure of the increase in salaries and the gross excess in the operating account as the final economic demand is raised.