Losing to Blackouts: Evidence from Firm Level Data

This study uses manufacturing firm census data from Ethiopia to identify productivity losses attributable to power disruptions

• From: Foreign, Commonwealth & Development Office
• Published: 10 July 2018

• Country: Ethiopia
• Document Type: Working Paper
• Theme: Economic Growth
• Authors: Gurara, D, Tesema, D

Abstract

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.

This work is part of the ‘Macroeconomics in Low-income countries’ programme

Citation

Daniel Gurara and Dawit Tessema (2018) Losing to Blackouts: Evidence from Firm Level Data. IMF Working Paper No. 18/159

Link

Losing to Blackouts: Evidence from Firm Level Data

Published 10 July 2018