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Electricity and manufacturing firm profits in Myanmar

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  • Lisa Chauvet

    (LEDa - Laboratoire d'Economie de Dauphine - CNRS - Centre National de la Recherche Scientifique - IRD - Institut de Recherche pour le Développement - Université Paris-Dauphine, FERDI - Fondation pour les Etudes et Recherches sur le Développement International)

  • de Miguel Torres Alvaro

    (PSE - Paris School of Economics)

  • Alexa Tiemann

    (OCDE - Département des affaires économiques)

Abstract

We examine the impact of being located in areas with higher availability of electricity on manufacturing firm profits in Myanmar. Using a survey of 497 manufacturing firms conducted in 2014 and covering the whole territory of Myanmar, we investigate whether firms belonging to industries that tend to make more intensive use of electricity show better performance if such firms are located in areas with higher availability of electricity. We find that electricity provided by the national power grid tends to have a positive impact on manufacturing firm profits. Results are robust to reducing the sample to firms that could not have chosen their location endogenously, as well as to the use of an instrumental variable.

Suggested Citation

  • Lisa Chauvet & de Miguel Torres Alvaro & Alexa Tiemann, 2018. "Electricity and manufacturing firm profits in Myanmar," Post-Print hal-01715529, HAL.
    • Handle: RePEc:hal:journl:hal-01715529
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01715529
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    References listed on IDEAS

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    1. Andrei A. Levchenko, 2007. "Institutional Quality and International Trade," Review of Economic Studies, Oxford University Press, vol. 74(3), pages 791-819.
    2. Dollar, David & Hallward-Driemeier, Mary & Mengistae, Taye, 2006. "Investment climate and international integration," World Development, Elsevier, vol. 34(9), pages 1498-1516, September.
    3. Nathan Nunn, 2007. "Relationship-Specificity, Incomplete Contracts, and the Pattern of Trade," The Quarterly Journal of Economics, Oxford University Press, vol. 122(2), pages 569-600.
    4. Peters, Jörg & Vance, Colin & Harsdorff, Marek, 2011. "Grid Extension in Rural Benin: Micro-Manufacturers and the Electrification Trap," World Development, Elsevier, vol. 39(5), pages 773-783, May.
    5. Rud, Juan Pablo, 2012. "Electricity provision and industrial development: Evidence from India," Journal of Development Economics, Elsevier, vol. 97(2), pages 352-367.
    6. Taryn Dinkelman, 2011. "The Effects of Rural Electrification on Employment: New Evidence from South Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3078-3108, December.
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    12. 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.
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    More about this item

    Keywords

    H4; L60; Myanmar; electricity; firm performance; O13; O14;

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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