Losing to Blackouts: Evidence from Firm Level Data
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Summary:
Many developing economies are often hit by electricity crises either because of supply constraints or lacking in broader energy market reforms. This study uses manufacturing firm census data from Ethiopia to identify productivity losses attributable to power disruptions. Our estimates show that these disruptions, on average, result in productivity losses of about 4–10 percent. We found nonlinear productivity losses at different quantiles along the productivity distribution. Firms at higher quantiles faced higher losses compared to firms around the median. We observed patterns of systematic shutdowns as firms attempt to minimize losses.
Series:
Working Paper No. 2018/159
Subject:
Capacity utilization Commodities Electricity Labor productivity Production Productivity Total factor productivity
English
Publication Date:
July 10, 2018
ISBN/ISSN:
9781484363973/1018-5941
Stock No:
WPIEA2018159
Pages:
45
Please address any questions about this title to publications@imf.org