- Published by
- USAID
The expectation that policy reforms that address policy constraints positively influence private sector investment is a fundamental link or assumption in many market systems development and policy reform efforts.
Critically, private sector investment is typically the key mechanism by which policy reform can achieve the development objectives (e.g. poverty reduction) of bilateral donors. Yet the existing evidence for this link is weak globally.
In response, the Leveraging Economic Opportunities (LEO) project financed a Review of Policy-Constrained Value Chain Initiatives that outlined a theoretical framework for the link between policy change and private sector investment, summarised recent evidence for this link and articulated the related measurement challenges.
In recognition of the limited empirical evidence available, the review also recommended several Feed the Future projects that could serve as case studies. Drawing from those recommendations, LEO and BFS agreed to conduct the three case studies that are presented in this paper.