Firms Operating under Infrastructure and Credit Constraints in Developing Countries : The Case of Power Generators
Many developing countries are unable to provide their industrial sector with reliable power and many enterprises have to contend with electricity that is insufficient and of poor quality. Because of these constraints, firms in developing countries...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101208091027 http://hdl.handle.net/10986/3981 |
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okr-10986-39812021-04-23T14:02:14Z Firms Operating under Infrastructure and Credit Constraints in Developing Countries : The Case of Power Generators Alby, Philippe Dethier, Jean-Jacques Straub, Stephane ACCESS TO CREDIT ACCESS TO ELECTRICITY ACCESS TO FINANCE APPROACH BARRIERS TO ENTRY BORROWER CARBON CHEMICALS CLIMATE CO COLLATERAL COMPETITORS CONVERGENCE COST OF ELECTRICITY CREDIT CONSTRAINTS CREDIT GUARANTEES CREDIT MARKET CREDIT MARKETS DIESEL ECONOMIC DEVELOPMENT ECONOMIC GROWTH ELECTRIC GENERATOR ELECTRIC GENERATORS ELECTRIC POWER ELECTRIC SUPPLY ELECTRICITY ELECTRICITY GENERATION ELECTRICITY PRICES ELECTRICITY SUPPLY EMPLOYMENT ENDOWMENTS ENERGY CONSUMPTION ENERGY EFFICIENCY ENTREPRENEUR ENTREPRENEURS EXCESS CAPACITY EXPENDITURE FINANCIAL DEVELOPMENT FINANCIAL INTERMEDIATION FINANCIAL MARKET FIRM SIZE FIRMS FOSSIL FOSSIL FUEL GENERATING CAPACITY GENERATION GENERATION CAPACITY GENERATION OF ELECTRICITY HYDROPOWER INCOME GROUPS INDUSTRIAL ENTERPRISES INFRASTRUCTURE DEVELOPMENT INITIAL INVESTMENT INTERNAL FUNDS INTERNATIONAL BANK INVESTMENT IN INFRASTRUCTURE LENDER LENDERS LOAN LOANABLE FUNDS MANUFACTURER MANUFACTURERS METALS MORAL HAZARD NATIONAL GRID NEGATIVE IMPACT NEGATIVE IMPACTS PH POWER POWER GENERATING CAPACITY POWER GENERATION POWER GENERATORS POWER PLANTS POWER PRODUCTION POWER SUPPLY PRIVATE ENTREPRENEURS PRIVATE INFRASTRUCTURE PRODUCTIVE CAPITAL PROVISION OF CREDIT PUBLIC INFRASTRUCTURE PUBLIC UTILITIES REAL ESTATE RENEWABLE ENERGY RURAL ELECTRIFICATION SAVINGS SERVICE QUALITY SIZE OF FIRMS SMALL FIRMS SUPPLIERS SUPPLY OF ELECTRICITY THEORY OF THE FIRM VOLTAGE WHOLESALE TRADE WORKING CAPITAL Many developing countries are unable to provide their industrial sector with reliable power and many enterprises have to contend with electricity that is insufficient and of poor quality. Because of these constraints, firms in developing countries opt for self-generation even though it is widely considered a second best solution. This paper develops a theoretical model of investment behavior in remedial infrastructure when physical and credit constraints are present. It then tests econometrically some implications from this model using a large sample of enterprises from 87 countries from the World Bank Enterprise Survey Database. After showing that these constraints interact and have non-linear effects depending on the industrial sector's degree of reliance on electricity and size of firms, the paper draws differentiated policy recommendations. Credit constraints appear to be the priority in sectors very reliant on electricity to spur entry and convergence to the technological frontier, while in other sectors, firms would benefit more widely from marginal improvements in electrical supply. 2012-03-19T18:43:18Z 2012-03-19T18:43:18Z 2010-12-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101208091027 http://hdl.handle.net/10986/3981 English Policy Research working paper ; no. WPS 5497 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CREDIT ACCESS TO ELECTRICITY ACCESS TO FINANCE APPROACH BARRIERS TO ENTRY BORROWER CARBON CHEMICALS CLIMATE CO COLLATERAL COMPETITORS CONVERGENCE COST OF ELECTRICITY CREDIT CONSTRAINTS CREDIT GUARANTEES CREDIT MARKET CREDIT MARKETS DIESEL ECONOMIC DEVELOPMENT ECONOMIC GROWTH ELECTRIC GENERATOR ELECTRIC GENERATORS ELECTRIC POWER ELECTRIC SUPPLY ELECTRICITY ELECTRICITY GENERATION ELECTRICITY PRICES ELECTRICITY SUPPLY EMPLOYMENT ENDOWMENTS ENERGY CONSUMPTION ENERGY EFFICIENCY ENTREPRENEUR ENTREPRENEURS EXCESS CAPACITY EXPENDITURE FINANCIAL DEVELOPMENT FINANCIAL INTERMEDIATION FINANCIAL MARKET FIRM SIZE FIRMS FOSSIL FOSSIL FUEL GENERATING CAPACITY GENERATION GENERATION CAPACITY GENERATION OF ELECTRICITY HYDROPOWER INCOME GROUPS INDUSTRIAL ENTERPRISES INFRASTRUCTURE DEVELOPMENT INITIAL INVESTMENT INTERNAL FUNDS INTERNATIONAL BANK INVESTMENT IN INFRASTRUCTURE LENDER LENDERS LOAN LOANABLE FUNDS MANUFACTURER MANUFACTURERS METALS MORAL HAZARD NATIONAL GRID NEGATIVE IMPACT NEGATIVE IMPACTS PH POWER POWER GENERATING CAPACITY POWER GENERATION POWER GENERATORS POWER PLANTS POWER PRODUCTION POWER SUPPLY PRIVATE ENTREPRENEURS PRIVATE INFRASTRUCTURE PRODUCTIVE CAPITAL PROVISION OF CREDIT PUBLIC INFRASTRUCTURE PUBLIC UTILITIES REAL ESTATE RENEWABLE ENERGY RURAL ELECTRIFICATION SAVINGS SERVICE QUALITY SIZE OF FIRMS SMALL FIRMS SUPPLIERS SUPPLY OF ELECTRICITY THEORY OF THE FIRM VOLTAGE WHOLESALE TRADE WORKING CAPITAL |
| spellingShingle |
ACCESS TO CREDIT ACCESS TO ELECTRICITY ACCESS TO FINANCE APPROACH BARRIERS TO ENTRY BORROWER CARBON CHEMICALS CLIMATE CO COLLATERAL COMPETITORS CONVERGENCE COST OF ELECTRICITY CREDIT CONSTRAINTS CREDIT GUARANTEES CREDIT MARKET CREDIT MARKETS DIESEL ECONOMIC DEVELOPMENT ECONOMIC GROWTH ELECTRIC GENERATOR ELECTRIC GENERATORS ELECTRIC POWER ELECTRIC SUPPLY ELECTRICITY ELECTRICITY GENERATION ELECTRICITY PRICES ELECTRICITY SUPPLY EMPLOYMENT ENDOWMENTS ENERGY CONSUMPTION ENERGY EFFICIENCY ENTREPRENEUR ENTREPRENEURS EXCESS CAPACITY EXPENDITURE FINANCIAL DEVELOPMENT FINANCIAL INTERMEDIATION FINANCIAL MARKET FIRM SIZE FIRMS FOSSIL FOSSIL FUEL GENERATING CAPACITY GENERATION GENERATION CAPACITY GENERATION OF ELECTRICITY HYDROPOWER INCOME GROUPS INDUSTRIAL ENTERPRISES INFRASTRUCTURE DEVELOPMENT INITIAL INVESTMENT INTERNAL FUNDS INTERNATIONAL BANK INVESTMENT IN INFRASTRUCTURE LENDER LENDERS LOAN LOANABLE FUNDS MANUFACTURER MANUFACTURERS METALS MORAL HAZARD NATIONAL GRID NEGATIVE IMPACT NEGATIVE IMPACTS PH POWER POWER GENERATING CAPACITY POWER GENERATION POWER GENERATORS POWER PLANTS POWER PRODUCTION POWER SUPPLY PRIVATE ENTREPRENEURS PRIVATE INFRASTRUCTURE PRODUCTIVE CAPITAL PROVISION OF CREDIT PUBLIC INFRASTRUCTURE PUBLIC UTILITIES REAL ESTATE RENEWABLE ENERGY RURAL ELECTRIFICATION SAVINGS SERVICE QUALITY SIZE OF FIRMS SMALL FIRMS SUPPLIERS SUPPLY OF ELECTRICITY THEORY OF THE FIRM VOLTAGE WHOLESALE TRADE WORKING CAPITAL Alby, Philippe Dethier, Jean-Jacques Straub, Stephane Firms Operating under Infrastructure and Credit Constraints in Developing Countries : The Case of Power Generators |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5497 |
| description |
Many developing countries are unable to
provide their industrial sector with reliable power and many
enterprises have to contend with electricity that is
insufficient and of poor quality. Because of these
constraints, firms in developing countries opt for
self-generation even though it is widely considered a second
best solution. This paper develops a theoretical model of
investment behavior in remedial infrastructure when physical
and credit constraints are present. It then tests
econometrically some implications from this model using a
large sample of enterprises from 87 countries from the World
Bank Enterprise Survey Database. After showing that these
constraints interact and have non-linear effects depending
on the industrial sector's degree of reliance on
electricity and size of firms, the paper draws
differentiated policy recommendations. Credit constraints
appear to be the priority in sectors very reliant on
electricity to spur entry and convergence to the
technological frontier, while in other sectors, firms would
benefit more widely from marginal improvements in electrical supply. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Alby, Philippe Dethier, Jean-Jacques Straub, Stephane |
| author_facet |
Alby, Philippe Dethier, Jean-Jacques Straub, Stephane |
| author_sort |
Alby, Philippe |
| title |
Firms Operating under Infrastructure and Credit Constraints in Developing Countries : The Case of Power Generators |
| title_short |
Firms Operating under Infrastructure and Credit Constraints in Developing Countries : The Case of Power Generators |
| title_full |
Firms Operating under Infrastructure and Credit Constraints in Developing Countries : The Case of Power Generators |
| title_fullStr |
Firms Operating under Infrastructure and Credit Constraints in Developing Countries : The Case of Power Generators |
| title_full_unstemmed |
Firms Operating under Infrastructure and Credit Constraints in Developing Countries : The Case of Power Generators |
| title_sort |
firms operating under infrastructure and credit constraints in developing countries : the case of power generators |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101208091027 http://hdl.handle.net/10986/3981 |
| _version_ |
1764389328898752512 |