IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v124y2019ic22.html
   My bibliography  Save this article

The impact of blackouts on the performance of micro and small enterprises: Evidence from Indonesia

Author

Listed:
  • Falentina, Anna T.
  • Resosudarmo, Budy P.

Abstract

The reliability of electricity supply is one of the most pressing challenges faced by many micro and small enterprises (MSEs) in developing countries. MSEs play a pivotal role in generating employment in these countries, yet the productivity of MSEs is relatively low. Little is known about how blackouts affect performance of MSEs. This paper is the first study to estimate the impact of such power blackouts on productivity of manufacturing MSEs and to discuss the role of the government in addressing the problem.

Suggested Citation

  • Falentina, Anna T. & Resosudarmo, Budy P., 2019. "The impact of blackouts on the performance of micro and small enterprises: Evidence from Indonesia," World Development, Elsevier, vol. 124(C), pages 1-1.
  • Handle: RePEc:eee:wdevel:v:124:y:2019:i:c:22
    DOI: 10.1016/j.worlddev.2019.104635
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X19302839
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. James R. Tybout, 2000. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 11-44, March.
    2. Chakravorty, Ujjayant & Pelli, Martino & Ural Marchand, Beyza, 2014. "Does the quality of electricity matter? Evidence from rural India," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 228-247.
    3. Leslie A. Martin & Shanthi Nataraj & Ann E. Harrison, 2017. "In with the Big, Out with the Small: Removing Small-Scale Reservations in India," American Economic Review, American Economic Association, vol. 107(2), pages 354-386, February.
    4. Budy P. Resosudarmo & Catur Sugiyanto & Ari Kuncoro, 2012. "Livelihood Recovery after Natural Disasters and the Role of Aid: The Case of the 2006 Yogyakarta Earthquake," Asian Economic Journal, East Asian Economic Association, vol. 26(3), pages 233-259, September.
    5. Arne Bigsten & Mulu Gebreeyesus, 2009. "Firm Productivity and Exports: Evidence from Ethiopian Manufacturing," Journal of Development Studies, Taylor & Francis Journals, vol. 45(10), pages 1594-1614.
    6. César Calderón & Enrique Moral‐Benito & Luis Servén, 2015. "Is infrastructure capital productive? A dynamic heterogeneous approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 30(2), pages 177-198, March.
    7. Foster, Vivien & Steinbuks, Jevgenijs, 2009. "Paying the price for unreliable power supplies : in-house generation of electricity by firms in Africa," Policy Research Working Paper Series 4913, The World Bank.
    8. Rud, Juan Pablo, 2012. "Electricity provision and industrial development: Evidence from India," Journal of Development Economics, Elsevier, vol. 97(2), pages 352-367.
    9. Rud, Juan Pablo, 2012. "Infrastructure regulation and reallocations within industry: Theory and evidence from Indian firms," Journal of Development Economics, Elsevier, vol. 99(1), pages 116-127.
    10. Dana Kassem, 2018. "Does Electrification Cause Industrial Development? Grid Expansion and Firm Turnover in Indonesia," CRC TR 224 Discussion Paper Series crctr224_2018_052_1, University of Bonn and University of Mannheim, Germany.
    11. Fisher-Vanden, Karen & Mansur, Erin T. & Wang, Qiong (Juliana), 2015. "Electricity shortages and firm productivity: Evidence from China's industrial firms," Journal of Development Economics, Elsevier, vol. 114(C), pages 172-188.
    12. Albert Berry & Edgard Rodriguez & Henry Sandee, 2001. "Small And Medium Enterprise Dynamics In Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(3), pages 363-384.
    13. Arief Anshory Yusuf & Andy Sumner, 2015. "Growth, Poverty, and Inequality under Jokowi," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 51(3), pages 323-348, December.
    14. repec:bla:rgscpp:v:11:y:2019:i:1:p:123-139 is not listed on IDEAS
    15. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126.
    16. Hunt Allcott & Allan Collard-Wexler & Stephen D. O'Connell, 2016. "How Do Electricity Shortages Affect Industry? Evidence from India," American Economic Review, American Economic Association, vol. 106(3), pages 587-624, March.
    17. Fredrik Sjöholm & Nannan Lundin, 2010. "The Role of Small Firms in the Technology Development of China," The World Economy, Wiley Blackwell, vol. 33(9), pages 1117-1139, September.
    18. De Loecker, Jan, 2007. "Do exports generate higher productivity? Evidence from Slovenia," Journal of International Economics, Elsevier, vol. 73(1), pages 69-98, September.
    19. Rasyad A. Parinduri, 2014. "Family Hardship and the Growth of Micro and Small Firms in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(1), pages 53-73, April.
    20. Michael Grimm & Renate Hartwig & Jann Lay, 2013. "Electricity Access and the Performance of Micro and Small Enterprises: Evidence from West Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 25(5), pages 815-829, December.
    21. Van Biesebroeck, Johannes, 2005. "Exporting raises productivity in sub-Saharan African manufacturing firms," Journal of International Economics, Elsevier, vol. 67(2), pages 373-391, December.
    22. Urrunaga, Roberto & Aparicio, Carlos, 2012. "Infrastructure and economic growth in Peru," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    23. Blalock, Garrick & Veloso, Francisco M., 2007. "Imports, Productivity Growth, and Supply Chain Learning," World Development, Elsevier, vol. 35(7), pages 1134-1151, July.
    24. repec:now:jirere:101.00000101 is not listed on IDEAS
    25. Andersen, Thomas Barnebeck & Dalgaard, Carl-Johan, 2013. "Power outages and economic growth in Africa," Energy Economics, Elsevier, vol. 38(C), pages 19-23.
    26. Urrunaga, Roberto & Aparicio, Carlos, 2012. "Infrastructure and economic growth in Peru," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    27. Dana Kassem, 2018. "Does Electrification Cause Industrial Development? Grid Expansion and Firm Turnover in Indonesia," CRC TR 224 Discussion Paper Series crctr224_2018_052, University of Bonn and University of Mannheim, Germany.
    28. A. Colin Cameron & Douglas L. Miller, 2015. "A Practitioner’s Guide to Cluster-Robust Inference," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 317-372.
    29. Mead, Donald C. & Liedholm, Carl, 1998. "The dynamics of micro and small enterprises in developing countries," World Development, Elsevier, vol. 26(1), pages 61-74, January.
    30. Albert Berry & Dipak Mazumdar, 1991. "Small‐Scale Industry in the Asian‐Pacific Region," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 5(2), pages 35-67, September.
    31. Iván González Gordón & Budy P. Resosudarmo, 2019. "A sectoral growth‐income inequality nexus in Indonesia," Regional Science Policy & Practice, Wiley Blackwell, vol. 11(1), pages 123-139, March.
    32. Philippe Alby & Jean-Jacques Dethier & Stéphane Straub, 2013. "Firms Operating under Electricity Constraints in Developing Countries," World Bank Economic Review, World Bank Group, vol. 27(1), pages 109-132.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Power blackouts; Productivity; Micro and small enterprises; Captive generator; Asia; Indonesia;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:124:y:2019:i:c:22. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.