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11min chapter
S4 Ep53: The role of evidence at development finance institutions
VoxDev Development Economics
Reevaluating External Validity in Investment Decisions
This chapter explores the challenges surrounding external validity in investment decision-making at development finance institutions. It argues that a reasonable level of certainty may be adequate, as multiple experiments can provide useful insights for investors. Additionally, the discussion emphasizes the importance of integrating rigorous evaluations and diverse investment strategies to enhance growth and attract private sector investment.
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