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Impact Assessments in Finance and Private Sector Development: What Have We Learned and What Should We Learn?

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  • David McKenzie

Abstract

Until recently rigorous impact evaluations have been rare in the area of finance and private sector development. One reason for this is the perception that many policies and projects in this area lend themselves less to formal evaluations. However, a vanguard of new impact evaluations on areas as diverse as fostering microenterprise growth, microfinance, rainfall insurance, and regulatory reform demonstrates that in many circumstances serious evaluation is possible. The purpose of this paper is to synthesize and distill the policy and implementation lessons emerging from these studies, use them to demonstrate the feasibility of impact evaluations in a broader array of topics, and thereby help prompt new impact evaluations for projects going forward. Copyright 2010, Oxford University Press.

Suggested Citation

  • David McKenzie, 2010. "Impact Assessments in Finance and Private Sector Development: What Have We Learned and What Should We Learn?," World Bank Research Observer, World Bank Group, vol. 25(2), pages 209-233, August.
  • Handle: RePEc:oup:wbrobs:v:25:y:2010:i:2:p:209-233
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    1. Agnes Gössinger & Werner G. Raza, 2011. "Bilaterale Entwicklungsfinanzierung in Europa," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 109, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    2. Nicholas Bloom & Benn Eifert & Aprajit Mahajan & David McKenzie & John Roberts, 2013. "Does Management Matter? Evidence from India," The Quarterly Journal of Economics, Oxford University Press, vol. 128(1), pages 1-51.
    3. Grabrucker, Katharina & Grimm, Michael, 2016. "Does Crime Deter South Africans from Self-Employment?," IZA Discussion Papers 10280, Institute for the Study of Labor (IZA).
    4. David McKenzie & Christopher Woodruff, 2014. "What Are We Learning from Business Training and Entrepreneurship Evaluations around the Developing World?," World Bank Research Observer, World Bank Group, vol. 29(1), pages 48-82.
    5. Cadot, Olivier & Fernandes, Ana & Gourdon, Julien & Mattoo, Aaditya, 2011. "Impact Evaluation of Trade Interventions: Paving the Way," CEPR Discussion Papers 8638, C.E.P.R. Discussion Papers.
    6. World Bank, 2011. "Measuring Changes in Client Lives through Microfinance : Contributions of Different Approaches," World Bank Other Operational Studies 9452, The World Bank.
    7. Campos, Francisco & Coville, Aidan & Fernandes, Ana M. & Goldstein, Markus & McKenzie, David, 2014. "Learning from the experiments that never happened: Lessons from trying to conduct randomized evaluations of matching grant programs in Africa," Journal of the Japanese and International Economies, Elsevier, vol. 33(C), pages 4-24.
    8. Rahman, Aminur, 2014. "Investment climate reforms and job creation in developing countries : what do we know and what should we do ?," Policy Research Working Paper Series 7025, The World Bank.
    9. Benhassine, Najy & Raballand, Gaël, 2009. "Beyond ideological cleavages: A unifying framework for industrial policies and other public interventions," Economic Systems, Elsevier, vol. 33(4), pages 293-309, December.
    10. Grimm, Michael & Paffhausen, Anna Luisa, 2015. "Do interventions targeted at micro-entrepreneurs and small and medium-sized firms create jobs? A systematic review of the evidence for low and middle income countries," Labour Economics, Elsevier, vol. 32(C), pages 67-85.
    11. Sara Johansson de Silva & Pierella Paci & Josefina Posadas, 2014. "Lessons Learned and Not Yet Learned from a Multicountry Initiative on Women's Economic Empowerment," World Bank Publications, The World Bank, number 16377.
    12. World Bank, 2012. "In Search of Opportunities : How a More Mobile Workforce Can Propel Ukraine’s Prosperity (Vol. 2 of 2) : Technical Report," World Bank Other Operational Studies 12287, The World Bank.
    13. Montgomery, Heather & Weiss, John, 2011. "Can Commercially-oriented Microfinance Help Meet the Millennium Development Goals? Evidence from Pakistan," World Development, Elsevier, vol. 39(1), pages 87-109, January.
    14. J Gourdon & JM Marchat & S Sharma & T Vishwanath, 2011. "Ex-Post Impact Evaluation of an Export Promotion Matching Grant : Tunisia's Second EMAF," World Bank Other Operational Studies 10890, The World Bank.
    15. Şeker, Murat & Yang, Judy S., 2014. "Bribery solicitations and firm performance in the Latin America and Caribbean region," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 246-264.
    16. McKenzie, David, 2011. "How can we learn whether firm policies are working in africa ? challenges (and solutions?) for experiments and structural models," Policy Research Working Paper Series 5632, The World Bank.

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