Extraneous Variables
Akhil D -
Hey everyone! Today, I am going to talk about the largest source of error when conducting my research.
This research’s methodology relies on a case study approach. After analyzing over 260 individual investments, 40 were found with the following criteria that let’s them be used for analysis.
- Appraisal Reports – All case studies have more than one appraisal report from the DFIs that invested in the project.
- Financial Statements – All case studies have appropriate financial statements of the company/holding company that was administrating the project.
- Audits – All case studies have reports that audit their financials, claimed impacts, and claimed processes.
The largest source of error came from the lack of transparency of DFI investments. Had there been more DFI transparency with financial data and results, more case studies could have been analyzed to reach more conclusive results.
This is one of the largest reasons there isn’t a lot or literature on this topic compared to other in the realm of development finance and development economics. Moreover, the lack of DFI transparency extends far beyond creating error when conducting research. Several organizations and leaders have called for change and action to make DFIs more transparent. As their investments and presence heighten, there will be an increase in international regulation and scrutiny which will then lead to “industry-wide” standards and regulation, including transparency.
Until next time!