Facilitating Innovative Growth of Low-Cost Private Schools: Experimental Evidence from Pakistan

Research Note
Published on 24 June 2019


The primary objective of this project, by Khwaja, Das and Andrabi (2019) is to understand what factors constrain growth and innovation in Low-Cost Private Schools (LCPS) with an emphasis on alleviating financial and educational quality in enhancing constraints. Both financial products and educational support services (ESS) products were specifically designed (or re-designed) for this project, and introduced into a previously untapped market. Key findings include: 1) there is significant demand for financing from LCPS; 2) it is profitable and relatively low-risk to lend to schools; 3) there is significant demand for quality-enhancing ESS products and services from LCPS, but the market for these is thin and most LCPS do not have access to them.