CONCEPTUAL MODEL OF AN ECONOMIC DEVELOPMENT INSTRUMENT: APPLICATION TO THE FEASIBILITY OF URBAN PROJECTS IN SMALL CITIES
Urban and territorial planning; Urban projects; Business chains; Local economic development; Economic and financial feasibility; Small cities.
The economic feasibility of large-scale urban projects constitutes one of the main challenges of contemporary urban and territorial planning, particularly in small municipalities characterized by low demographic and economic density, fiscal constraints, and limited institutional capacity. In this context, conventional urban planning instruments—such as Urban Consortium Operations and Public–Private Partnerships—have shown limited effectiveness, as they tend to rely predominantly on real estate valorization and lack mechanisms capable of systematically articulating urban planning with local economic opportunities. In response to this gap, this dissertation proposes the development of a conceptual model of an economic development instrumentbased on business chains, aimed at structuring and enabling urban projects in small and medium-sized cities. The central hypothesis is that identifying territorial productive vocations— through the selection of anchor activities and the activation of upstream and downstream linkages—can generate economic and fiscal multipliers capable of financially sustaining urban interventions and inducing more robust territorial development trajectories. The research adopts a theoretical–applied approach, combining a critical literature review, analysis of national and international experiences, formulation of a conceptual model structured in eight operational stages, and empirical validation through computational simulation. The model was applied to the municipality of Baianópolis (BA), representative of small cities with weakly integrated primary-based economies, using an input–output matrix–based computational environment to estimate economic impacts associated with the activation of strategic productive activities. The results indicate that the proposed model enables the reorganization of local economic dynamics by activating strategic productive linkages, expanding the productive base, and generating significant impacts in terms of output, employment, income, and fiscal revenue. In the case study, the selection of an anchor activity linked to the soybean and corn value chain proved capable of filling structural gaps, inducing complementary investments, and repositioning the urban project as an instrument of economic activation and functional territorial reorganization. It is concluded that overcoming the disconnection between urban planning and local economic opportunities requires a shift in the planning starting point—from urban form and isolated legal instruments to the economic function of the territory. By systematically integrating economy, space, and governance within a single analytical framework, the proposed conceptual model contributes to the advancement of urban and territorial planning by offering an innovative and replicable approach to the economic feasibility of sustainable urban projects in small cities.