Business Training in Tanzania: From Research-driven Experiment to Local Implementation

Field experiments documenting positive treatment effects have a strong policy message: scale up! However, such experiments are typically implemented under close supervision of the research group in charge of the study. In contrast, scaling up would typically imply relying on local organisation. It is not obvious that the positive treatment effects identified in the research-driven intervention can be replicated locally. The present study explicitly addresses this challenge by analysing the local version of a research-driven business training programme among microfinance entrepreneurs in Tanzania. Comparing the local programme with the research-led programme in terms of attendance and subjective evaluation, we find that success in local implementation cannot be taken for granted. Moreover, an analysis of long-term outcomes also demonstrates a weaker impact of the local programme. We conclude that the estimated effect of research-led interventions should be interpreted as an upper bound of what can be achieved when scaling up such interventions locally. Copyright 2012 , Oxford University Press.

[1]  Dean S. Karlan,et al.  Behind the Gate Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training , 2012, SSRN Electronic Journal.

[2]  Dean S. Karlan,et al.  Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions , 2006, Review of Economics and Statistics.

[3]  Angus Deaton Instruments, Randomization, and Learning about Development , 2010 .

[4]  Jessica Cohen,et al.  What Works in Development?: Thinking Big and Thinking Small , 2010 .

[5]  B. Tungodden,et al.  Teaching Business in Tanzania: Evaluating Participation and Performance , 2009 .

[6]  Dani Rodrik,et al.  The New Development Economics: We Shall Experiment, but How Shall We Learn? , 2008 .

[7]  J. Svensson,et al.  POWER TO THE PEOPLE: EVIDENCE FROM A RANDOMIZED FIELD EXPERIMENT ON COMMUNITY-BASED MONITORING IN UGANDA∗ , 2008 .

[8]  Jakob Svensson,et al.  Power to the People: Evidence from a Randomized Field Experiment of a Community-Based Monitoring Project in Uganda , 2007 .

[9]  María Soledad Martínez Pería The economics of microfinance , 2006 .

[10]  B. Armendáriz,et al.  The Economics of Microfinance , 2006 .

[11]  David S. Lee Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects , 2005 .

[12]  Edward Miguel,et al.  Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities, Guide to Replication of Miguel and Kremer (2004) , 2014 .

[13]  J. Stiglitz The new development economics , 1986 .