Public works, investments and their regional economic effects

This paper presents the possibility of planning Public Works and Investments in general, according to the economic effects caused to the economy of the regions where they are constructed. The interregional input–output analysis and, in particular the multiregional input–output model is at the ‘core’ of this research. With the use of trade coefficients and the creation of interregional multipliers, the possibility of estimation of the output for every region and the general economic changes, which can be caused by a public investment program, is given. It is also possible to estimate the changes in regional inequalities, as well as the regulation of this program, so that economic development can also be successful, apart from regional development. This paper refers mainly to the general economic changes, which are brought about during the implementation of the works. These are usually the short-term effects, but there is the possibility for an analogous regulation and the estimation for the corresponding long-term effects.