New web tool assists in the development of evaluating individual company foreign direct investment projects to boost economic growth
SGS worked with Invest Victoria to develop a cost benefit analysis along with a user-friendly web tool to support the evaluation of individual foreign direct investment (FDI) projects across Victoria. The Strategic Economic Impact Model (SEIM) assesses projects that impact Invest Victoria's strategic objectives by including a broad set of measures, both quantitative and qualitative.
SGS evaluated projects funded between 2015 and 2019 inclusive to achieve the following objectives:
- Evaluate the program’s effectiveness as a foreign and domestic investment attraction program, directed by the program’s guidelines and objectives
- Quantify the economic contribution of funded projects to the state’s economy to demonstrate the value of the program in terms of strategic economic impact, and
- Provide recommendations and insights to Invest Victoria to enhance program design, monitoring and evaluation.
A key component of this project was understanding the scope of competing investment locations and the importance of funding in the private sector’s investment decision making.
By exploring these issues, the insights were applied to the direct value-added contributions of funded projects to estimate economic benefits for Victoria, resulting in project delivery cost deductions to estimate net economic benefit.
SEIM uses Computable General Equilibrium (CGE) model outputs to identify how funded projects contribute to overall economic activity levels across Victoria, i.e. after accounting for the inevitable displacement effects caused as FDI projects compete for scarce human and other resources in Victoria.