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The Welfare Impacts of Local Investment Projects: Evidence from the Guatemala FIS


  • Pablo Ibarraran

    (Office of Evaluation and Oversight, Inter-American Development Bank)

  • Miguel Sarzosa

    (Office of Evaluation and Oversight, Inter-American Development Bank)

  • Yuri Suarez Dillon Soares

    () (Office of Evaluation and Oversight, Inter-American Development Bank)


This paper assesses the welfare impacts of local investments projects in rural areas of Guatemala. Using census track data from two rounds of the Guatemalan population census, we find, as expected, that local investment in schools significantly boost enrollment and normal progression in school, that investments in water and sewerage significantly improved measures of access to water. We also show that the amount of investment matters. Using a dose-response functions based on generalized propensity score we also find that larger investments are associated with larger welfare improvements. We find no evidence of effectiveness of investments on child mortality. In terms of productive projects, there was a significant and consistent impact on consumption. We did not find evidence to suggest complementarities of impacts.

Suggested Citation

  • Pablo Ibarraran & Miguel Sarzosa & Yuri Suarez Dillon Soares, 2008. "The Welfare Impacts of Local Investment Projects: Evidence from the Guatemala FIS," OVE Working Papers 0208, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
  • Handle: RePEc:idb:ovewps:0208

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    References listed on IDEAS

    1. Christina Paxson & Norbert R. Schady, 2002. "The Allocation and Impact of Social Funds: Spending on School Infrastructure in Peru," World Bank Economic Review, World Bank Group, vol. 16(2), pages 297-319, August.
    2. repec:idb:brikps:19258 is not listed on IDEAS
    3. Luis Marcano, 2005. "Atacando Pobreza: Evaluación del Programa Fondo de Inversión Social de Panamá," OVE Working Papers 0205, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    4. Lechner, Michael, 1999. "Identification and Estimation of Causal Effects of Multiple Treatments Under the Conditional Independence Assumption," IZA Discussion Papers 91, Institute for the Study of Labor (IZA).
    5. Feres, Juan Carlos & Mancero, Xavier, 2000. "El método de las necesidades básicas insatisfechas (NBI) y sus aplicaciones en América Latina," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 31527, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. Rachel Marcus, 2002. "Social funds as instruments for reducing childhood poverty: lessons from Save the Children's experience," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(5), pages 653-666.
    7. Elbers, Chris & Lanjouw, Jean O. & Lanjouw, Peter, 2002. "Micro-level estimation of welfare," Policy Research Working Paper Series 2911, The World Bank.
    8. Guido W. Imbens, 1999. "The Role of the Propensity Score in Estimating Dose-Response Functions," NBER Technical Working Papers 0237, National Bureau of Economic Research, Inc.
    9. Vijayendra Rao & Ana Maria Ibanez, 2005. "The Social Impact of Social Funds in Jamaica: A 'Participatory Econometric' Analysis of Targeting, Collective Action, and Participation in Community-Driven Development," Journal of Development Studies, Taylor & Francis Journals, vol. 41(5), pages 788-838.
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    Cited by:

    1. Francisca Henriquez, 2009. "Microcrédito y su Impacto: Un Acercamiento con Datos Chilenos," OVE Working Papers 0309, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    2. José Miguel Benavente & Gustavo Crespi & Alessandro Maffioli, 2007. "The Impact of National Research Funds: An Evaluation of the Chilean FONDECYT," OVE Working Papers 0307, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    3. Inder Ruprah & Luis Marcano, 2009. "Does technical assistance matter? An impact evaluation approach to estimate its value added," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 1(4), pages 507-528.
    4. Verónica M. Gonzalez Diez & Pablo Ibarrarán & Alessandro Maffioli & Sandra Rozo, 2009. "The Impact of Technology Adoption on Agricultural Productivity: The Case of the Dominican Republic," IDB Publications (Working Papers) 3017, Inter-American Development Bank.

    More about this item


    Social Investment Fund; Local Development; Propensity Score Matching; Impact Evaluation;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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