Methodology for financial valuation of the economic effects of a city brand based on financial and market indicators

In this paper, a methodology for the financial valuation of a city brand's economic effects is presented, based on the analysis of financial and market performance indicators. The study aims to identify and systematize, within a quantitative analytical framework, the key revenue and expenditure flows that reflect the economic effects of urban development, and to enable their monitoring and comparison over a multi-year period. The proposed methodology is based on the calculation of gross economic inflows, including revenues from tourism, foreign direct investment, and exports of goods and services, as well as the associated expenditures and capital outflows, thereby enabling the estimation of the city's net economic effect. The application of the proposed methodology is illustrated on the example of a city in Bosnia and Herzegovina, thereby demonstrating its practical operability and significance for the analysis of economic flows at the local level. The model provides local authorities and decision-makers with a clearer insight into the structure and dynamics of economic flows, facilitating the identification of areas with the greatest development potential as well as those requiring additional investment. The application of the proposed methodology offers a reliable basis for informed decision-making in the process of strategic economic and urban development planning, as well as for evaluating the effectiveness of development policies over the long term.