Top-down versus bottom-up project appraisal processes, and external review

Evidence from Norway and China

Authors

  • Wenting Chen Department of Civil Engineering and Transportation, Norwegian University of Science and Technology and Norwegian Institute for Water Research
  • Gro Holst Volden Concept Research Program, Norwegian University of Science and Technology

DOI:

https://doi.org/10.58235/sjpa.v17i3.15733

Keywords:

External review, Game theory, Project appraisal process, Top-down process, Bottom-up process

Abstract

Project appraisal plays an important role in choosing the right project and is crucial for the success of public investment projects. Different factors may affect the choice of appraisal process in different countries. By use of simple game-theoretical models, the article aims to answer two questions: Why do countries adopt different public investment appraisal processes, such as top-down versus bottom-up processes? Why do different countries share similar features, such as external review, in the public investment appraisal process? Two selected countries, China and Norway, are used as case studies. The results illustrate that a country’s political system and social norms play important roles in determining the selection of a project appraisal process. However, external review schemes such as external evaluation by consulting companies and experts can be optimal in both top-down and bottom-up project appraisal processes.

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Author Biographies

Wenting Chen, Department of Civil Engineering and Transportation, Norwegian University of Science and Technology and Norwegian Institute for Water Research

Wenting Chen, PhD in economics, Researcher at the Department of Civil Engineering and Transportation, Norwegian University of Science and Technology and Norwegian Institute for Water

Gro Holst Volden, Concept Research Program, Norwegian University of Science and Technology

Gro Holst Volden, Research Director, Concept Research Program, Norwegian University of Science and Technology.

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Published

2013-09-15

How to Cite

Chen, W., & Volden, G. H. (2013). Top-down versus bottom-up project appraisal processes, and external review: Evidence from Norway and China. Scandinavian Journal of Public Administration, 17(3), 65–83. https://doi.org/10.58235/sjpa.v17i3.15733

Issue

Section

Original Articles

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