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The Burden of Water Shortages on Informal Firms

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  • Asif Islam

Abstract

The informal sector in developing economies is a significant source of livelihood for a sizable portion of the population. This study uncovers the effect of poor water infrastructure on the productivity of informal firms. This is achieved using firm-level data for 12 developing economies between 2009 and 2014. The findings indicate that an increase of one standard deviation of the total duration of water shortages in a month can lead to annual average losses of about 14.5% of the monthly sales per worker for the average informal firm in the sample that uses water for business activities.

Suggested Citation

  • Asif Islam, 2019. "The Burden of Water Shortages on Informal Firms," Land Economics, University of Wisconsin Press, vol. 95(1), pages 91-107.
    • Handle: RePEc:uwp:landec:v:95:y:2019:i:1:p:91-107
    Note: DOI: 10.3368/le.95.1.91
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    File URL: http://le.uwpress.org/cgi/reprint/95/1/91
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    Cited by:

    1. Islam, Asif & Hyland, Marie, 2019. "The drivers and impacts of water infrastructure reliability – a global analysis of manufacturing firms," Ecological Economics, Elsevier, vol. 163(C), pages 143-157.
    2. Islam, Asif M. & Amin, Mohammad, 2023. "The gender labor productivity gap across informal firms," World Development, Elsevier, vol. 167(C).
    3. Mohammad Amin & Asif M. Islam, 2022. "Does manager education play a role in the productivity of informal firms in developing economies? Evidence from firm‐level surveys," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 962-984, May.

    More about this item

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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