The Impact of Electricity Shortages on Firm Productivity : Evidence from Pakistan
Power shortages present a significant challenge to manufacturers, who rely on power as a key input to production. In Pakistan, power shortages are commonplace, but empirical evidence on the impact of shortages is still lacking. Using a survey of 4,...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/978661498756334535/The-impact-of-electricity-shortages-on-firm-productivity-evidence-from-Pakistan http://hdl.handle.net/10986/27633 |
| Summary: | Power shortages present a significant
challenge to manufacturers, who rely on power as a key input
to production. In Pakistan, power shortages are commonplace,
but empirical evidence on the impact of shortages is still
lacking. Using a survey of 4,500 manufacturing firms for the
year 2010-11, this paper estimates the impact of electricity
shortages on firm productivity in Pakistan. The analysis
finds that a 10 percent increase in the duration of outages
on average leads to a 0.14 percent decrease in a firm's
total revenue and a 0.36 percent decrease in the value
added, all else being equal. There is heterogeneity in the
impacts of shortages across sectors: the industries that are
most energy-intensive, such as manufacturers of metal, wood,
and paper, are affected the most severely by shortages. |
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