The Drivers and Impacts of Water Infrastructure Reliability : A Global Analysis of Manufacturing Firms

Inadequate infrastructure impedes the productivity of manufacturing firms, with negative consequences for the wider economy. This study examines how water infrastructure copes with severe weather fluctuations and analyzes the effect of unreliable w...

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Main Authors:	Islam, Asif, Hyland, Marie
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	INFRASTRUCTURE WATER INFRASTRUCTURE DROUGHT FIRM PRODUCTIVITY WEATHER WATER SUPPLY UTILITY PERFORMANCE WATER OUTAGE
Online Access:	http://documents.worldbank.org/curated/en/364371541098905355/The-Drivers-and-Impacts-of-Water-Infrastructure-Reliability-A-Global-Analysis-of-Manufacturing-Firms http://hdl.handle.net/10986/30843

id	okr-10986-30843
recordtype	oai_dc
spelling	okr-10986-308432021-12-06T12:21:58Z The Drivers and Impacts of Water Infrastructure Reliability : A Global Analysis of Manufacturing Firms Islam, Asif Hyland, Marie INFRASTRUCTURE WATER INFRASTRUCTURE DROUGHT FIRM PRODUCTIVITY WEATHER WATER SUPPLY UTILITY PERFORMANCE WATER OUTAGE Inadequate infrastructure impedes the productivity of manufacturing firms, with negative consequences for the wider economy. This study examines how water infrastructure copes with severe weather fluctuations and analyzes the effect of unreliable water supplies on the productivity of manufacturing firms, focusing predominately on firms in developing economies. This is achieved using firm-level data from World Bank Enterprise Surveys covering more than 16,000 manufacturing firms in a cross-section of 103 countries between 2009 and 2015. The study finds that periods of significantly low rainfall lead to higher water outages, and that the overall impact is driven by the effects of drought on low-income and lower-middle-income economies, with upper-middle-income and high-income economies benefitting from more resilient water infrastructure. Furthermore, the study finds that incidents of water outages lead to lower firm productivity for firms in less developed economies. For the average firm located in a low-income or lower-middle-income economy, one additional water outage incident per day in a typical month can lead to losses of approximately 8.2 percent of annual sales. This finding calls for increased policy focus on water infrastructure services, particularly in poorer countries where water infrastructure and firms seem to be particularly vulnerable to the vagaries of rainfall. 2018-11-12T20:56:34Z 2018-11-12T20:56:34Z 2018-11 Working Paper http://documents.worldbank.org/curated/en/364371541098905355/The-Drivers-and-Impacts-of-Water-Infrastructure-Reliability-A-Global-Analysis-of-Manufacturing-Firms http://hdl.handle.net/10986/30843 English Policy Research Working Paper;No. 8637 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	INFRASTRUCTURE WATER INFRASTRUCTURE DROUGHT FIRM PRODUCTIVITY WEATHER WATER SUPPLY UTILITY PERFORMANCE WATER OUTAGE
spellingShingle	INFRASTRUCTURE WATER INFRASTRUCTURE DROUGHT FIRM PRODUCTIVITY WEATHER WATER SUPPLY UTILITY PERFORMANCE WATER OUTAGE Islam, Asif Hyland, Marie The Drivers and Impacts of Water Infrastructure Reliability : A Global Analysis of Manufacturing Firms
relation	Policy Research Working Paper;No. 8637
description	Inadequate infrastructure impedes the productivity of manufacturing firms, with negative consequences for the wider economy. This study examines how water infrastructure copes with severe weather fluctuations and analyzes the effect of unreliable water supplies on the productivity of manufacturing firms, focusing predominately on firms in developing economies. This is achieved using firm-level data from World Bank Enterprise Surveys covering more than 16,000 manufacturing firms in a cross-section of 103 countries between 2009 and 2015. The study finds that periods of significantly low rainfall lead to higher water outages, and that the overall impact is driven by the effects of drought on low-income and lower-middle-income economies, with upper-middle-income and high-income economies benefitting from more resilient water infrastructure. Furthermore, the study finds that incidents of water outages lead to lower firm productivity for firms in less developed economies. For the average firm located in a low-income or lower-middle-income economy, one additional water outage incident per day in a typical month can lead to losses of approximately 8.2 percent of annual sales. This finding calls for increased policy focus on water infrastructure services, particularly in poorer countries where water infrastructure and firms seem to be particularly vulnerable to the vagaries of rainfall.
format	Working Paper
author	Islam, Asif Hyland, Marie
author_facet	Islam, Asif Hyland, Marie
author_sort	Islam, Asif
title	The Drivers and Impacts of Water Infrastructure Reliability : A Global Analysis of Manufacturing Firms
title_short	The Drivers and Impacts of Water Infrastructure Reliability : A Global Analysis of Manufacturing Firms
title_full	The Drivers and Impacts of Water Infrastructure Reliability : A Global Analysis of Manufacturing Firms
title_fullStr	The Drivers and Impacts of Water Infrastructure Reliability : A Global Analysis of Manufacturing Firms
title_full_unstemmed	The Drivers and Impacts of Water Infrastructure Reliability : A Global Analysis of Manufacturing Firms
title_sort	drivers and impacts of water infrastructure reliability : a global analysis of manufacturing firms
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/364371541098905355/The-Drivers-and-Impacts-of-Water-Infrastructure-Reliability-A-Global-Analysis-of-Manufacturing-Firms http://hdl.handle.net/10986/30843
_version_	1764472997909889024

The Drivers and Impacts of Water Infrastructure Reliability : A Global Analysis of Manufacturing Firms

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