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Evaluating the Impact of Infrastructure Rehabilitation Interventions on Household Welfare in Georgia

Sponsor: Environmentally and Socially Sustainable Development Network, Poverty Reduction and Economic Management Network

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By Michael Lokshin and Ruslan Yemtsov

This paper evaluates the effect of various community level infrastructure rehabilitation projects undertaken in rural Georgia on household wellbeing. The analysis is based on combining household and community level survey data. The empirical approach utilizes the panel structure of the data to control for time-invariant unobservables at the community level by applying propensity-score-matched double difference comparison. The results indicate that improvements in school and road infrastructure produce nontrivial welfare gains for the poor at the village and country levels. The impact of water rehabilitation projects is ambiguous. School rehabilitation projects produce the largest gains for the poor. The methodological lesson from this analysis is that ad hoc community surveys matched with ongoing nationally representative surveys can provide a feasible and low cost impact evaluation tool.

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